DBC.VN WACC - Weighted Average Cost of Capital
The WACC of Dabaco Group (DBC.VN) is 9.8%.
| Range | Selected | |
| Cost of equity | 12.1% - 15.6% | 13.85% |
| Tax rate | 13.2% - 39.0% | 26.1% |
| Cost of debt | 4.0% - 5.1% | 4.55% |
| WACC | 8.8% - 10.9% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.99 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.1% | 15.6% |
| Tax rate | 13.2% | 39.0% |
| Debt/Equity ratio | 0.62 | 0.62 |
| Cost of debt | 4.0% | 5.1% |
| After-tax WACC | 8.8% | 10.9% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DBC.VN | Dabaco Group | 0.62 | 1.2 | 0.79 |
| ANV.VN | Nam Viet Corp | 0.44 | 1.3 | 0.95 |
| FMC.VN | Sao Ta Foods JSC | 0.4 | 1.16 | 0.87 |
| IDI.VN | I.D.I International Development and Investment Corp | 3.24 | 1.75 | 0.47 |
| KDC.VN | Kido Group Corp | 0.25 | 0.19 | 0.16 |
| MPC.VN | Minh Phu Seafood JSC | 0.58 | 1.13 | 0.76 |
| SBT.VN | Thanh Thanh Cong - Bien Hoa JSC | 1.1 | 0.17 | 0.09 |
| TAC.VN | Tuongan Vegetable Oil JSC | 0.63 | 1.21 | 0.79 |
| VCF.VN | Vinacafe Bien Hoa JSC | 0.03 | -0.18 | -0.17 |
| VHC.VN | Vinh Hoan Corp | 0.19 | 1.37 | 1.18 |
| Low | High | |
| Unlevered beta | 0.64 | 0.79 |
| Relevered beta | 0.99 | 1.19 |
| Adjusted relevered beta | 0.99 | 1.13 |
DBC.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 DBC.VN:
cost_of_equity (13.85%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.99) + 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.