DGC.VN WACC - Weighted Average Cost of Capital
The WACC of Ducgiang Chemicals Group JSC (DGC.VN) is 11.4%.
| Range | Selected | |
| Cost of equity | 9.9% - 13.2% | 11.55% |
| Tax rate | 5.3% - 6.0% | 5.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.8% - 13.0% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.75 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 13.2% |
| Tax rate | 5.3% | 6.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.8% | 13.0% |
| Selected WACC | 11.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DGC.VN | Ducgiang Chemicals Group JSC | 0.03 | 1.42 | 1.38 |
| 000737.SZ | Nafine Chemical Industry Group Co Ltd | 0.46 | 1.19 | 0.83 |
| 065950.KQ | Welcron Co Ltd | 3.05 | 0.39 | 0.1 |
| 603630.SS | Lafang China Co Ltd | 0 | 1.04 | 1.04 |
| 7818.T | Transaction Co Ltd | 0.01 | -0.08 | -0.08 |
| 9919.TW | KNH Enterprise Co Ltd | 0.93 | 0.95 | 0.51 |
| EVEREADY.NS | Eveready Industries India Ltd | 0.14 | 1.02 | 0.91 |
| JYOTHYLAB.NS | Jyothy Labs Ltd | 0 | 0.84 | 0.83 |
| LIX.VN | LIX Detergent JSC | 0.03 | 0.68 | 0.67 |
| NET.VN | NET Detergent JSC | 0.08 | 0.59 | 0.55 |
| Low | High | |
| Unlevered beta | 0.62 | 0.83 |
| Relevered beta | 0.63 | 0.85 |
| Adjusted relevered beta | 0.75 | 0.9 |
DGC.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 DGC.VN:
cost_of_equity (11.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.75) + 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.