HIG.VN
HiPT Group JSC
Price:  
13.50 
VND
Volume:  
100.00
Viet Nam | N/A
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HIG.VN WACC - Weighted Average Cost of Capital

The WACC of HiPT Group JSC (HIG.VN) is 8.8%.

The Cost of Equity of HiPT Group JSC (HIG.VN) is 9.55%.
The Cost of Debt of HiPT Group JSC (HIG.VN) is 4.25%.

Range Selected
Cost of equity 8.40% - 10.70% 9.55%
Tax rate 10.50% - 32.30% 21.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.8% - 9.8% 8.8%
WACC

HIG.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.59 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.70%
Tax rate 10.50% 32.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 4.00% 4.50%
After-tax WACC 7.8% 9.8%
Selected WACC 8.8%

HIG.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 HIG.VN:

cost_of_equity (9.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.59) + 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.