HNM.VN
Hanoi Milk JSC
Price:  
9,300 
VND
Volume:  
556,700
Viet Nam | Manufacturing

HNM.VN WACC - Weighted Average Cost of Capital

The WACC of Hanoi Milk JSC (HNM.VN) is 9.1%.

The Cost of Equity of Hanoi Milk JSC (HNM.VN) is 9.75%.
The Cost of Debt of Hanoi Milk JSC (HNM.VN) is 4.25%.

RangeSelected
Cost of equity8.1% - 11.4%9.75%
Tax rate22.1% - 22.3%22.2%
Cost of debt4.0% - 4.5%4.25%
WACC7.6% - 10.7%9.1%
WACC

HNM.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.560.73
Additional risk adjustments0.0%0.5%
Cost of equity8.1%11.4%
Tax rate22.1%22.3%
Debt/Equity ratio
0.110.11
Cost of debt4.0%4.5%
After-tax WACC7.6%10.7%
Selected WACC9.1%

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.