DCM.VN WACC - Weighted Average Cost of Capital
The WACC of PetroVietnam Ca Mau Fertilizer JSC (DCM.VN) is 13.9%.
| Range | Selected | |
| Cost of equity | 10.9% - 13.8% | 12.35% |
| Tax rate | 6.5% - 7.0% | 6.75% |
| Cost of debt | 4.0% - 69.9% | 36.95% |
| WACC | 10.4% - 17.5% | 13.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.86 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 13.8% |
| Tax rate | 6.5% | 7.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 69.9% |
| After-tax WACC | 10.4% | 17.5% |
| Selected WACC | 13.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DCM.VN | PetroVietnam Ca Mau Fertilizer JSC | 0.08 | 1.29 | 1.2 |
| BFC.VN | Binh Dien Fertilizer JSC | 0.58 | 1.06 | 0.69 |
| CPC.VN | Cantho Pesticides JSC | 0.08 | 0.62 | 0.58 |
| DPM.VN | PetroVietnam Fertilizer and Chemicals Corp | 0.26 | 1.01 | 0.81 |
| HAI.VN | HAI Agrochem JSC | 0.82 | 1.35 | 0.77 |
| LAS.VN | Lam Thao Fertilizers and Chemicals JSC | 0.33 | 1.6 | 1.22 |
| SFG.VN | Southern Fertilizer JSC | 1.31 | 0.66 | 0.3 |
| VAF.VN | Van Dien Fused Magnesium Phosphate Fertilizer JSC | 0 | 1.11 | 1.11 |
| VFG.VN | Viet Nam Fumigation JSC | 0.06 | 1.03 | 0.97 |
| VPS.VN | Vietnam Pesticide JSC | 0.18 | 0.45 | 0.39 |
| Low | High | |
| Unlevered beta | 0.73 | 0.88 |
| Relevered beta | 0.79 | 0.94 |
| Adjusted relevered beta | 0.86 | 0.96 |
DCM.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 DCM.VN:
cost_of_equity (12.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.86) + 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.