DAD.VN WACC - Weighted Average Cost of Capital
The WACC of Danang Education Investment And Development JSC (DAD.VN) is 8.0%.
| Range | Selected | |
| Cost of equity | 8.6% - 13.0% | 10.8% |
| Tax rate | 24.8% - 25.4% | 25.1% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.9% - 9.1% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.61 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 13.0% |
| Tax rate | 24.8% | 25.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.9% | 9.1% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DAD.VN | Danang Education Investment And Development JSC | 1.09 | 0.09 | 0.05 |
| 426.HK | One Media Group Ltd | 3.54 | 1.15 | 0.32 |
| CYBERMEDIA.NS | Cyber Media India Ltd | 0.46 | 1.06 | 0.79 |
| EBS.VN | Educational Book JSC in Ha Noi City | 0.06 | -0.04 | -0.04 |
| ECI.VN | Education Cartography and Illustration JSC | 0.07 | -0.19 | -0.18 |
| EID.VN | Ha Noi Education Development And Investment JSC | 0.05 | 0.48 | 0.47 |
| HBE.VN | Hatinh Book And Equiptment Education JSC | 0.05 | 0.95 | 0.92 |
| LBE.VN | Long An School Book and Equipment JSC | 0.16 | -0.12 | -0.11 |
| LPLI.JK | Star Pacific Tbk PT | 0.03 | 0.81 | 0.8 |
| PPG.KL | Pelangi Publishing Group Bhd | 0.34 | 0.16 | 0.13 |
| SED.VN | Phuong Nam Education Investment and Development JSC | 0.23 | 0.56 | 0.47 |
| Low | High | |
| Unlevered beta | 0.13 | 0.47 |
| Relevered beta | 0.42 | 0.82 |
| Adjusted relevered beta | 0.61 | 0.88 |
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.