HJS.VN WACC - Weighted Average Cost of Capital
The WACC of Nam Mu Hydropower JSC (HJS.VN) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.5% - 11.1% | 8.8% |
| Tax rate | 20.1% - 20.2% | 20.15% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.0% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.39 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 11.1% |
| Tax rate | 20.1% | 20.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.0% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HJS.VN | Nam Mu Hydropower JSC | 0.88 | -0.22 | -0.13 |
| CHP.VN | Central Hydropower JSC | 0.12 | 0.39 | 0.36 |
| DDG.VN | Indochine Import Export Investment Industrial JSC | 3.41 | 1.16 | 0.31 |
| S4A.VN | Sesan 4A Hydroelectric JSC | 0.18 | -0.42 | -0.37 |
| SBA.VN | Song Ba JSC | 0.04 | -0.17 | -0.16 |
| SEB.VN | Mien Trung Power Investment and Development JSC | 0 | 0.31 | 0.31 |
| SHP.VN | Southern Hydropower JSC | 0.01 | 0.39 | 0.39 |
| SJD.VN | Can Don Hydro Power JSC | 0.22 | 0.39 | 0.34 |
| TBC.VN | Thacba Hydro Power JSC | 0.04 | -0.09 | -0.09 |
| TMP.VN | Thac Mo Hydropower JSC | 0.08 | 0.06 | 0.06 |
| VPD.VN | Viet Nam Power Development JSC | 0.06 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.05 | 0.31 |
| Relevered beta | 0.09 | 0.55 |
| Adjusted relevered beta | 0.39 | 0.7 |
HJS.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 HJS.VN:
cost_of_equity (8.80%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.39) + 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.