GTN.VN WACC - Weighted Average Cost of Capital
The WACC of GTNFoods JSC (GTN.VN) is 10.4%.
| Range | Selected | |
| Cost of equity | 9.0% - 12.1% | 10.55% |
| Tax rate | 8.6% - 10.9% | 9.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.9% - 11.9% | 10.4% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.69 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 12.1% |
| Tax rate | 8.6% | 10.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.9% | 11.9% |
| Selected WACC | 10.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GTN.VN | GTNFoods JSC | 0.02 | 0.58 | 0.58 |
| BISI.JK | BISI INTERNATIONAL Tbk PT | 0 | 1.09 | 1.09 |
| HAG.VN | Hoang Anh Gia Lai JSC | 0.5 | 0.52 | 0.36 |
| HNG.VN | Hoang Anh Gia Lai Agricultural JSC | 1.92 | 1.48 | 0.54 |
| HOKI.JK | Buyung Poetra Sembada Tbk PT | 0.44 | 0.97 | 0.7 |
| HSPLANT.KL | Hap Seng Plantations Holdings Bhd | 0.04 | 0.71 | 0.68 |
| KSCL.NS | Kaveri Seed Company Ltd | 0 | 1.06 | 1.06 |
| NSC.VN | Vietnam National Seed Group JSC | 0.15 | 0.21 | 0.18 |
| SJF.VN | Sunstar Investment JSC | 1.09 | 1.86 | 0.94 |
| TAR.VN | Trung An Hi-Tech Farming JSC | 2.73 | 2.39 | 0.69 |
| Low | High | |
| Unlevered beta | 0.64 | 0.7 |
| Relevered beta | 0.54 | 0.76 |
| Adjusted relevered beta | 0.69 | 0.84 |
GTN.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 GTN.VN:
cost_of_equity (10.55%) = risk_free_rate (3.55%) + equity_risk_premium (8.80%) * 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.