HCC.VN WACC - Weighted Average Cost of Capital
The WACC of Intimex Hoa Cam Concrete JSC (HCC.VN) is 8.0%.
| Range | Selected | |
| Cost of equity | 9.9% - 13.4% | 11.65% |
| Tax rate | 18.5% - 19.7% | 19.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.6% - 9.5% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.75 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 13.4% |
| Tax rate | 18.5% | 19.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.6% | 9.5% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HCC.VN | Intimex Hoa Cam Concrete JSC | 1.06 | 0.67 | 0.36 |
| BHC.VN | Bien Hoa Concrete JSC | 4.1 | 1.27 | 0.29 |
| DID.VN | DIC - Dong Tien JDC | 1.17 | 1.25 | 0.64 |
| GKM.VN | Khang Minh Group JSC | 0.52 | 0.09 | 0.06 |
| GMX.VN | My Xuan Brick Tile Pottery and Construction JSC | 0.04 | 0.24 | 0.23 |
| HLY.VN | Viglacera HaLong I JSC | 2.13 | 1.05 | 0.39 |
| KSD.VN | DNA Investment Joint Stock Corp | 0.01 | 0.58 | 0.58 |
| LBM.VN | Lamdong Minerals and Building Materials JSC | 0.09 | 1.19 | 1.11 |
| MCC.VN | High Grade Brick Tile Corp | 0.04 | -0.32 | -0.31 |
| PDB.VN | Dufago Construction Materials Corp | 0.16 | 0.63 | 0.56 |
| Low | High | |
| Unlevered beta | 0.33 | 0.45 |
| Relevered beta | 0.63 | 0.88 |
| Adjusted relevered beta | 0.75 | 0.92 |
HCC.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 HCC.VN:
cost_of_equity (11.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.75) + 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.