DPR.VN WACC - Weighted Average Cost of Capital
The WACC of Dong Phu Rubber JSC (DPR.VN) is 7.7%.
| Range | Selected | |
| Cost of equity | 8.6% - 13.7% | 11.15% |
| Tax rate | 16.7% - 17.4% | 17.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 8.9% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.62 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 13.7% |
| Tax rate | 16.7% | 17.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 8.9% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DPR.VN | Dong Phu Rubber JSC | 1.14 | 2 | 1.02 |
| CSV.VN | South Basic Chemicals JSC | 0.03 | 1.63 | 1.59 |
| DNP.VN | Dongnai Plastic JSC | 2.82 | 0.49 | 0.15 |
| DTT.VN | Do Thanh Technology Corp | 0.2 | -1.03 | -0.89 |
| HDA.VN | Dong A Paint JSC | 0.7 | 0.44 | 0.28 |
| HVT.VN | Viet Tri Chemical JSC | 0.25 | 0.89 | 0.73 |
| NHP.VN | NHP Production Import Export JSC | 0.35 | 0.84 | 0.65 |
| PHR.VN | Phuoc Hoa Rubber JSC | 0.01 | 1.54 | 1.53 |
| PLP.VN | Pha Le Plastics Manufacturing and Technology JSC | 4.06 | 0.34 | 0.08 |
| RDP.VN | Rang Dong Holding JSC | 5.61 | 2.02 | 0.36 |
| SDN.VN | DongNai Paint Corp | 0.17 | 0.84 | 0.74 |
| Low | High | |
| Unlevered beta | 0.36 | 0.73 |
| Relevered beta | 0.43 | 0.93 |
| Adjusted relevered beta | 0.62 | 0.95 |
DPR.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 DPR.VN:
cost_of_equity (11.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.62) + 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.