DNP.VN WACC - Weighted Average Cost of Capital
The WACC of Dongnai Plastic JSC (DNP.VN) is 11.4%.
| Range | Selected | |
| Cost of equity | 11.7% - 17.9% | 14.8% |
| Tax rate | 26.5% - 37.2% | 31.85% |
| Cost of debt | 8.3% - 22.7% | 15.5% |
| WACC | 7.6% - 15.3% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.94 | 1.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.7% | 17.9% |
| Tax rate | 26.5% | 37.2% |
| Debt/Equity ratio | 2.75 | 2.75 |
| Cost of debt | 8.3% | 22.7% |
| After-tax WACC | 7.6% | 15.3% |
| Selected WACC | 11.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DNP.VN | Dongnai Plastic JSC | 2.75 | 0.55 | 0.19 |
| CSV.VN | South Basic Chemicals JSC | 0.03 | 1.44 | 1.41 |
| DTT.VN | Do Thanh Technology Corp | 0.19 | -1.01 | -0.89 |
| HDA.VN | Dong A Paint JSC | 0.66 | 0.39 | 0.27 |
| HII.VN | An Tien Industries JSC | 1.67 | 0.74 | 0.35 |
| HVT.VN | Viet Tri Chemical JSC | 0.21 | 0.94 | 0.82 |
| PHR.VN | Phuoc Hoa Rubber JSC | 0.01 | 1.79 | 1.78 |
| PLC.VN | Petrolimex Petrochemical Corp JSC | 0.85 | 1.11 | 0.7 |
| PLP.VN | Pha Le Plastics Manufacturing and Technology JSC | 4.09 | 0.35 | 0.09 |
| RDP.VN | Rang Dong Holding JSC | 5.61 | 2.02 | 0.42 |
| Low | High | |
| Unlevered beta | 0.32 | 0.53 |
| Relevered beta | 0.91 | 1.52 |
| Adjusted relevered beta | 0.94 | 1.35 |
DNP.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 DNP.VN:
cost_of_equity (14.80%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.94) + 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.