EVS.VN WACC - Weighted Average Cost of Capital
The WACC of Everest Securities JSC (EVS.VN) is 14.3%.
| Range | Selected | |
| Cost of equity | 15.0% - 18.9% | 16.95% |
| Tax rate | 19.0% - 19.4% | 19.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 12.7% - 15.8% | 14.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 1.29 | 1.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.0% | 18.9% |
| Tax rate | 19.0% | 19.4% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 12.7% | 15.8% |
| Selected WACC | 14.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EVS.VN | Everest Securities JSC | 0.25 | 1.62 | 1.35 |
| AGR.VN | Agribank Securities Joint-Stock Corp | 0.13 | 1.81 | 1.63 |
| APG.VN | APG Securities Joint Stock Co | 0 | 1.11 | 1.11 |
| APS.VN | Asia Pacific Securities JSC | 0.01 | 1.77 | 1.75 |
| FTS.VN | FPT Securities JSC | 0.23 | 1.77 | 1.5 |
| MBS.VN | MB Securities JSC | 0.92 | 1.99 | 1.14 |
| ORS.VN | Tien Phong Securities Corporation | 2.29 | 1.44 | 0.51 |
| PSI.VN | Petrovienam Securities Inc | 4.08 | 1.39 | 0.32 |
| SHS.VN | Saigon Hanoi Securities JSC | 0.19 | 1.65 | 1.43 |
| VDS.VN | Viet Dragon Securities Corp | 0.78 | 2 | 1.23 |
| Low | High | |
| Unlevered beta | 1.19 | 1.38 |
| Relevered beta | 1.43 | 1.66 |
| Adjusted relevered beta | 1.29 | 1.44 |
EVS.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 EVS.VN:
cost_of_equity (16.95%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.29) + 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.