HNM.VN WACC - Weighted Average Cost of Capital
The WACC of Hanoi Milk JSC (HNM.VN) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.4% | 9.75% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.6% - 10.7% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.56 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.4% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.6% | 10.7% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HNM.VN | Hanoi Milk JSC | 0.11 | 1.18 | 1.09 |
| ACE.VN | An Giang Centrifugal Concrete JSC | 0.42 | 0.42 | 0.32 |
| HSL.VN | Hong Ha Food Investment Development JSC | 0.07 | 0.3 | 0.29 |
| PMT.VN | Telvina Vietnam Communication JSC | 0 | 0.25 | 0.25 |
| SCL.VN | Song Da Cao Cuong JSC | 0.46 | 1.01 | 0.74 |
| SDK.VN | Mechanical Engineering Metallurgy JSC | 0.48 | 0.59 | 0.43 |
| SVG.VN | Industrial Gas and Welding Electrode JSC | 0.35 | 1.93 | 1.52 |
| Low | High | |
| Unlevered beta | 0.36 | 0.62 |
| Relevered beta | 0.34 | 0.6 |
| Adjusted relevered beta | 0.56 | 0.73 |
HNM.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 HNM.VN:
cost_of_equity (9.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.56) + 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.