HNG.VN
Hoang Anh Gia Lai Agricultural JSC
Price:  
6,200.00 
VND
Volume:  
7,641,300.00
Viet Nam | Food Products
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HNG.VN WACC - Weighted Average Cost of Capital

The WACC of Hoang Anh Gia Lai Agricultural JSC (HNG.VN) is 7.2%.

The Cost of Equity of Hoang Anh Gia Lai Agricultural JSC (HNG.VN) is 10.60%.
The Cost of Debt of Hoang Anh Gia Lai Agricultural JSC (HNG.VN) is 5.65%.

Range Selected
Cost of equity 8.80% - 12.40% 10.60%
Tax rate 0.80% - 6.20% 3.50%
Cost of debt 4.30% - 7.00% 5.65%
WACC 5.8% - 8.6% 7.2%
WACC

HNG.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.63 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 12.40%
Tax rate 0.80% 6.20%
Debt/Equity ratio 1.92 1.92
Cost of debt 4.30% 7.00%
After-tax WACC 5.8% 8.6%
Selected WACC 7.2%

HNG.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 HNG.VN:

cost_of_equity (10.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.63) + 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.