DL1.VN WACC - Weighted Average Cost of Capital
The WACC of Viet Nam Renewable Energy Group JSC (DL1.VN) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 8.5% | 7.65% |
| Tax rate | 5.9% - 10.5% | 8.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.4% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.43 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 8.5% |
| Tax rate | 5.9% | 10.5% |
| Debt/Equity ratio | 0.92 | 0.92 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.4% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DL1.VN | Viet Nam Renewable Energy Group JSC | 0.92 | 1.82 | 0.99 |
| 052300.KQ | W Holding Company Co Ltd | 0.16 | -0.19 | -0.16 |
| ATP30.BK | ATP30 PCL | 0.97 | 0.83 | 0.44 |
| BPTR.JK | Batavia Prosperindo Trans Tbk PT | 5.42 | 0.53 | 0.09 |
| GCAP.KL | G Capital Bhd | 0.5 | 0.17 | 0.11 |
| HMH.VN | Hai Minh Corp | 0.01 | 0.07 | 0.07 |
| KIAT.BK | Kiattana Transport PCL | 0.11 | 0.54 | 0.49 |
| VNS.VN | Vietnam Sun Corp | 0.45 | 0.12 | 0.08 |
| ZBRA.JK | Zebra Nusantara Tbk PT | 8.81 | 0.31 | 0.03 |
| Low | High | |
| Unlevered beta | 0.08 | 0.11 |
| Relevered beta | 0.15 | 0.18 |
| Adjusted relevered beta | 0.43 | 0.45 |
DL1.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 DL1.VN:
cost_of_equity (7.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.43) + 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.