DRI.VN WACC - Weighted Average Cost of Capital
The WACC of Daklak Rubber Investment JSC (DRI.VN) is 10.4%.
| Range | Selected | |
| Cost of equity | 8.5% - 13.0% | 10.75% |
| Tax rate | 22.9% - 25.4% | 24.15% |
| Cost of debt | 4.0% - 5.3% | 4.65% |
| WACC | 8.2% - 12.5% | 10.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.61 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.5% | 13.0% |
| Tax rate | 22.9% | 25.4% |
| Debt/Equity ratio | 0.06 | 0.06 |
| Cost of debt | 4.0% | 5.3% |
| After-tax WACC | 8.2% | 12.5% |
| Selected WACC | 10.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DRI.VN | Daklak Rubber Investment JSC | 0.04 | 1.84 | 1.79 |
| BSH.VN | Sai Gon Ha Noi Beer Corp | 1.1 | -0.51 | -0.28 |
| BSP.VN | Saigon Phutho Beer JSC | 0.52 | 0.54 | 0.38 |
| SCL.VN | Song Da Cao Cuong JSC | 0.51 | 1.01 | 0.73 |
| SVG.VN | Industrial Gas and Welding Electrode JSC | 0.4 | 1.93 | 1.48 |
| VEC.VN | Vietnam Electronics and Informatics Joint Stock Corp | 1.17 | 0.93 | 0.49 |
| VHF.VN | Vinh Ha Food Processing and Construction JSC | 0.27 | 1.08 | 0.89 |
| XHC.VN | Xuan Hoa Viet Nam JSC | 0.52 | -0.26 | -0.19 |
| Low | High | |
| Unlevered beta | 0.47 | 0.76 |
| Relevered beta | 0.42 | 0.82 |
| Adjusted relevered beta | 0.61 | 0.88 |
DRI.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 DRI.VN:
cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.61) + 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.