GIL.VN WACC - Weighted Average Cost of Capital

The WACC of BinhThanh Import Export Production and Trade JSC (GIL.VN) is 8.1%.

The Cost of Equity of BinhThanh Import Export Production and Trade JSC (GIL.VN) is 11.90%.

The Cost of Debt of BinhThanh Import Export Production and Trade JSC (GIL.VN) is 4.25%.

	Range	Selected
Cost of equity	10.30% - 13.50%	11.90%
Tax rate	31.90% - 39.40%	35.65%
Cost of debt	4.00% - 4.50%	4.25%
WACC	7.2% - 9.1%	8.1%

WACC

GIL.VN WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	9.5%	10.5%
Adjusted beta	0.8	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.50%

Tax rate	31.90%	39.40%
Debt/Equity ratio	0.7	0.7
Cost of debt	4.00%	4.50%

After-tax WACC	7.2%	9.1%


Selected WACC	8.1%

GIL.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 GIL.VN:

cost_of_equity (11.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * 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.