DSP.VN WACC - Weighted Average Cost of Capital
The WACC of Phu Tho Tourist Service JSC (DSP.VN) is 8.1%.
| Range | Selected | |
| Cost of equity | 9.2% - 12.4% | 10.8% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.3% - 8.9% | 8.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.68 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 12.4% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.3% | 8.9% |
| Selected WACC | 8.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DSP.VN | Phu Tho Tourist Service JSC | 0.96 | -0.95 | -0.54 |
| ABC.VN | VMG Media JSC | 1.23 | 1.2 | 0.61 |
| BMJ.VN | Easterns AHP Minerals JSC | 0.32 | 0.17 | 0.13 |
| BSA.VN | Buon Don Hydropower JSC | 0.22 | 0.33 | 0.28 |
| GHC.VN | Gia Lai Hydropower JSC | 0.27 | 0.36 | 0.3 |
| ISH.VN | Idico Srok Phu Mieng Hydropower JSC | 0.01 | 0.32 | 0.32 |
| ND2.VN | North Electrictiy Development and Investment JSC No2 | 0.32 | 0.15 | 0.12 |
| PHS.VN | Phu Hung Securities Corp | 1 | 1.67 | 0.94 |
| SZB.VN | Sonadezi Long Binh Share Holding Co | 0.04 | 0.58 | 0.56 |
| Low | High | |
| Unlevered beta | 0.29 | 0.31 |
| Relevered beta | 0.52 | 0.75 |
| Adjusted relevered beta | 0.68 | 0.83 |
DSP.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 DSP.VN:
cost_of_equity (10.80%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.68) + 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.