HID.VN WACC - Weighted Average Cost of Capital
The WACC of HALCOM VIETNAM JSC (HID.VN) is 10.2%.
| Range | Selected | |
| Cost of equity | 8.3% - 16.2% | 12.25% |
| Tax rate | 12.2% - 37.0% | 24.6% |
| Cost of debt | 5.2% - 22.7% | 13.95% |
| WACC | 5.5% - 14.8% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.58 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 16.2% |
| Tax rate | 12.2% | 37.0% |
| Debt/Equity ratio | 2.82 | 2.82 |
| Cost of debt | 5.2% | 22.7% |
| After-tax WACC | 5.5% | 14.8% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HID.VN | HALCOM VIETNAM JSC | 2.82 | 0.14 | 0.04 |
| 002020.KS | Kolon Corp | 8.08 | 1.08 | 0.14 |
| ALT.VN | Alta Co | 0.44 | 0.44 | 0.32 |
| AMD.VN | FLC Stone Mining and Investment JSC | 1.28 | 0.96 | 0.46 |
| EVG.VN | Everland Group JSC | 0.46 | 1.61 | 1.16 |
| HCD.VN | Hcd Investment Producing and Trading JSC | 0.59 | 0.98 | 0.66 |
| LDP.VN | Lam Dong Pharmaceutical JSC | 0.39 | 0.1 | 0.07 |
| PET.VN | PetroVietnam General Services Corp | 2.05 | 1.6 | 0.59 |
| THS.VN | Song Da Thanh Hoa JSC | 1.95 | -0.9 | -0.34 |
| WARISAN.KL | Warisan TC Holdings Bhd | 3.72 | 0.23 | 0.06 |
| Low | High | |
| Unlevered beta | 0.11 | 0.38 |
| Relevered beta | 0.37 | 1.27 |
| Adjusted relevered beta | 0.58 | 1.18 |
HID.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 HID.VN:
cost_of_equity (12.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.58) + 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.