The WACC of An Tien Industries JSC (HII.VN) is 11.7%.
| Range | Selected | |
| Cost of equity | 14.60% - 29.60% | 22.10% |
| Tax rate | 5.50% - 11.50% | 8.50% |
| Cost of debt | 5.60% - 6.40% | 6.00% |
| WACC | 8.8% - 14.6% | 11.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 1.25 | 2.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.60% | 29.60% |
| Tax rate | 5.50% | 11.50% |
| Debt/Equity ratio | 1.68 | 1.68 |
| Cost of debt | 5.60% | 6.40% |
| After-tax WACC | 8.8% | 14.6% |
| Selected WACC | 11.7% | |
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 HII.VN:
cost_of_equity (22.10%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.25) + 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.