DTD.VN
Thanh Dat Investment Development JSC
Price:  
19,000.00 
VND
Volume:  
1,416,200.00
Viet Nam | Construction & Engineering
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DTD.VN WACC - Weighted Average Cost of Capital

The WACC of Thanh Dat Investment Development JSC (DTD.VN) is 8.7%.

The Cost of Equity of Thanh Dat Investment Development JSC (DTD.VN) is 9.10%.
The Cost of Debt of Thanh Dat Investment Development JSC (DTD.VN) is 4.30%.

Range Selected
Cost of equity 7.80% - 10.40% 9.10%
Tax rate 20.20% - 20.30% 20.25%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.5% - 9.9% 8.7%
WACC

DTD.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.54 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.40%
Tax rate 20.20% 20.30%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 4.60%
After-tax WACC 7.5% 9.9%
Selected WACC 8.7%

DTD.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 DTD.VN:

cost_of_equity (9.10%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.54) + 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.