FCM.VN
Fecon Mining JSC
Price:  
3.82 
VND
Volume:  
360,100.00
Viet Nam | Construction Materials
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FCM.VN WACC - Weighted Average Cost of Capital

The WACC of Fecon Mining JSC (FCM.VN) is 7.7%.

The Cost of Equity of Fecon Mining JSC (FCM.VN) is 11.35%.
The Cost of Debt of Fecon Mining JSC (FCM.VN) is 5.10%.

Range Selected
Cost of equity 9.30% - 13.40% 11.35%
Tax rate 20.70% - 21.90% 21.30%
Cost of debt 4.00% - 6.20% 5.10%
WACC 6.2% - 9.1% 7.7%
WACC

FCM.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.69 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 13.40%
Tax rate 20.70% 21.90%
Debt/Equity ratio 1 1
Cost of debt 4.00% 6.20%
After-tax WACC 6.2% 9.1%
Selected WACC 7.7%

FCM.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 FCM.VN:

cost_of_equity (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.69) + 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.