DGC.VN
Ducgiang Chemicals Group JSC
Price:  
90.70 
VND
Volume:  
1,448,900.00
Viet Nam | Household Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

DGC.VN WACC - Weighted Average Cost of Capital

The WACC of Ducgiang Chemicals Group JSC (DGC.VN) is 11.5%.

The Cost of Equity of Ducgiang Chemicals Group JSC (DGC.VN) is 11.70%.
The Cost of Debt of Ducgiang Chemicals Group JSC (DGC.VN) is 4.25%.

Range Selected
Cost of equity 10.20% - 13.20% 11.70%
Tax rate 5.30% - 6.00% 5.65%
Cost of debt 4.00% - 4.50% 4.25%
WACC 10.0% - 13.0% 11.5%
WACC

DGC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.78 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 13.20%
Tax rate 5.30% 6.00%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 4.50%
After-tax WACC 10.0% 13.0%
Selected WACC 11.5%

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 (11.70%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.78) + 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.