DZM.VN
Dzi An Mechanoelectric JSC
Price:  
2.9 
VND
Volume:  
7,700
Viet Nam | Electrical Equipment

DZM.VN WACC - Weighted Average Cost of Capital

The WACC of Dzi An Mechanoelectric JSC (DZM.VN) is 6.9%.

The Cost of Equity of Dzi An Mechanoelectric JSC (DZM.VN) is 10.2%.
The Cost of Debt of Dzi An Mechanoelectric JSC (DZM.VN) is 6%.

RangeSelected
Cost of equity7.7% - 12.7%10.2%
Tax rate22.1% - 22.3%22.2%
Cost of debt5.0% - 7.0%6%
WACC5.4% - 8.3%6.9%
WACC

DZM.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.520.86
Additional risk adjustments0.0%0.5%
Cost of equity7.7%12.7%
Tax rate22.1%22.3%
Debt/Equity ratio
1.531.53
Cost of debt5.0%7.0%
After-tax WACC5.4%8.3%
Selected WACC6.9%

DZM.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 DZM.VN:

cost_of_equity (10.20%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.52) + 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.