DAD.VN
Danang Education Investment And Development JSC
Price:  
18,000 
VND
Volume:  
100
Viet Nam | Media

DAD.VN WACC - Weighted Average Cost of Capital

The WACC of Danang Education Investment And Development JSC (DAD.VN) is 8.0%.

The Cost of Equity of Danang Education Investment And Development JSC (DAD.VN) is 10.8%.
The Cost of Debt of Danang Education Investment And Development JSC (DAD.VN) is 7%.

RangeSelected
Cost of equity8.6% - 13.0%10.8%
Tax rate24.8% - 25.4%25.1%
Cost of debt7.0% - 7.0%7%
WACC6.9% - 9.1%8.0%
WACC

DAD.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.610.88
Additional risk adjustments0.0%0.5%
Cost of equity8.6%13.0%
Tax rate24.8%25.4%
Debt/Equity ratio
11
Cost of debt7.0%7.0%
After-tax WACC6.9%9.1%
Selected WACC8.0%

DAD.VN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.130.47
Relevered beta0.420.82
Adjusted relevered beta0.610.88

DAD.VN's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for DAD.VN:

cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.61) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.