EVF.VN
EVN Finance JSC
Price:  
9.81 
VND
Volume:  
15,986,234.00
Viet Nam | N/A
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EVF.VN WACC - Weighted Average Cost of Capital

The WACC of EVN Finance JSC (EVF.VN) is 8.1%.

The Cost of Equity of EVN Finance JSC (EVF.VN) is 12.60%.
The Cost of Debt of EVN Finance JSC (EVF.VN) is 5.00%.

Range Selected
Cost of equity 11.20% - 14.00% 12.60%
Tax rate 19.70% - 19.70% 19.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 8.8% 8.1%
WACC

EVF.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.89 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 14.00%
Tax rate 19.70% 19.70%
Debt/Equity ratio 1.11 1.11
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 8.8%
Selected WACC 8.1%

EVF.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 EVF.VN:

cost_of_equity (12.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.89) + 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.