GTS.VN
Saigon Traffic Construction JSC
Price:  
11.40 
VND
Volume:  
100.00
Viet Nam | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

GTS.VN WACC - Weighted Average Cost of Capital

The WACC of Saigon Traffic Construction JSC (GTS.VN) is 8.8%.

The Cost of Equity of Saigon Traffic Construction JSC (GTS.VN) is 13.65%.
The Cost of Debt of Saigon Traffic Construction JSC (GTS.VN) is 5.00%.

Range Selected
Cost of equity 11.80% - 15.50% 13.65%
Tax rate 20.10% - 20.10% 20.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.9% - 9.8% 8.8%
WACC

GTS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.96 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 15.50%
Tax rate 20.10% 20.10%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.9% 9.8%
Selected WACC 8.8%

GTS.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 GTS.VN:

cost_of_equity (13.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.96) + 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.