FIR.VN WACC - Weighted Average Cost of Capital

The WACC of First Real JSC (FIR.VN) is 10.5%.

The Cost of Equity of First Real JSC (FIR.VN) is 9.90%.

The Cost of Debt of First Real JSC (FIR.VN) is 14.65%.

	Range	Selected
Cost of equity	8.30% - 11.50%	9.90%
Tax rate	19.50% - 25.10%	22.30%
Cost of debt	14.50% - 14.80%	14.65%
WACC	9.7% - 11.3%	10.5%

WACC

FIR.VN WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	9.5%	10.5%
Adjusted beta	0.59	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	11.50%

Tax rate	19.50%	25.10%
Debt/Equity ratio	0.67	0.67
Cost of debt	14.50%	14.80%

After-tax WACC	9.7%	11.3%


Selected WACC	10.5%

FIR.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 FIR.VN:

cost_of_equity (9.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.59) + 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.