HCD.VN WACC - Weighted Average Cost of Capital
The WACC of Hcd Investment Producing and Trading JSC (HCD.VN) is 8.7%.
| Range | Selected | |
| Cost of equity | 8.9% - 12.4% | 10.65% |
| Tax rate | 15.9% - 17.6% | 16.75% |
| Cost of debt | 4.0% - 8.6% | 6.3% |
| WACC | 6.9% - 10.4% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.65 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 12.4% |
| Tax rate | 15.9% | 17.6% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.0% | 8.6% |
| After-tax WACC | 6.9% | 10.4% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HCD.VN | Hcd Investment Producing and Trading JSC | 0.59 | 0.98 | 0.66 |
| ALT.VN | Alta Co | 0.44 | 0.44 | 0.32 |
| AMD.VN | FLC Stone Mining and Investment JSC | 1.28 | 0.96 | 0.47 |
| DLG.VN | Duc Long Gia Lai Group JSC | 3.31 | 1.2 | 0.32 |
| EVG.VN | Everland Group JSC | 0.46 | 1.61 | 1.17 |
| HID.VN | HALCOM VIETNAM JSC | 2.82 | 0.14 | 0.04 |
| PET.VN | PetroVietnam General Services Corp | 2.05 | 1.6 | 0.59 |
| PMS.VN | Petroleum Mechanical JSC | 0.16 | 0.6 | 0.54 |
| PNC.VN | Phuong Nam Cultural Joint Stock Corp | 0 | 0.32 | 0.31 |
| WARISAN.KL | Warisan TC Holdings Bhd | 3.72 | 0.23 | 0.06 |
| Low | High | |
| Unlevered beta | 0.32 | 0.49 |
| Relevered beta | 0.48 | 0.73 |
| Adjusted relevered beta | 0.65 | 0.82 |
HCD.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 HCD.VN:
cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.65) + 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.