FIR.VN WACC - Weighted Average Cost of Capital

The WACC of First Real JSC (FIR.VN) is 11.3%.

The Cost of Equity of First Real JSC (FIR.VN) is 13.35%.

The Cost of Debt of First Real JSC (FIR.VN) is 10.60%.

	Range	Selected
Cost of equity	10.40% - 16.30%	13.35%
Tax rate	19.50% - 25.10%	22.30%
Cost of debt	6.40% - 14.80%	10.60%
WACC	8.4% - 14.2%	11.3%

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	0.81	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	16.30%

Tax rate	19.50%	25.10%
Debt/Equity ratio	0.63	0.63
Cost of debt	6.40%	14.80%

After-tax WACC	8.4%	14.2%


Selected WACC	11.3%

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 (13.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.81) + 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.