DPM.VN
PetroVietnam Fertilizer and Chemicals Corp
Price:  
34.00 
VND
Volume:  
2,261,700.00
Viet Nam | Chemicals
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DPM.VN WACC - Weighted Average Cost of Capital

The WACC of PetroVietnam Fertilizer and Chemicals Corp (DPM.VN) is 11.3%.

The Cost of Equity of PetroVietnam Fertilizer and Chemicals Corp (DPM.VN) is 13.30%.
The Cost of Debt of PetroVietnam Fertilizer and Chemicals Corp (DPM.VN) is 4.35%.

Range Selected
Cost of equity 11.80% - 14.80% 13.30%
Tax rate 16.90% - 17.20% 17.05%
Cost of debt 4.20% - 4.50% 4.35%
WACC 10.1% - 12.5% 11.3%
WACC

DPM.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.96 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 14.80%
Tax rate 16.90% 17.20%
Debt/Equity ratio 0.26 0.26
Cost of debt 4.20% 4.50%
After-tax WACC 10.1% 12.5%
Selected WACC 11.3%

DPM.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 DPM.VN:

cost_of_equity (13.30%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.96) + 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.