FTS.VN
FPT Securities JSC
Price:  
36.5 
VND
Volume:  
6,852,700
Viet Nam | Capital Markets

FTS.VN WACC - Weighted Average Cost of Capital

The WACC of FPT Securities JSC (FTS.VN) is 10.4%.

The Cost of Equity of FPT Securities JSC (FTS.VN) is 11.8%.
The Cost of Debt of FPT Securities JSC (FTS.VN) is 5%.

RangeSelected
Cost of equity9.9% - 13.7%11.8%
Tax rate15.1% - 16.7%15.9%
Cost of debt5.0% - 5.0%5%
WACC8.9% - 11.9%10.4%
WACC

FTS.VN WACC calculation

CategoryLowHigh
Long-term bond rate3.3%3.8%
Equity market risk premium8.3%9.3%
Adjusted beta0.81.01
Additional risk adjustments0.0%0.5%
Cost of equity9.9%13.7%
Tax rate15.1%16.7%
Debt/Equity ratio
0.230.23
Cost of debt5.0%5.0%
After-tax WACC8.9%11.9%
Selected WACC10.4%

FTS.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 FTS.VN:

cost_of_equity (11.80%) = risk_free_rate (3.55%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.