HPW.VN
Hai Phong Water JSC
Price:  
18,900.00 
VND
Volume:  
100.00
Viet Nam | N/A
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HPW.VN WACC - Weighted Average Cost of Capital

The WACC of Hai Phong Water JSC (HPW.VN) is 6.9%.

The Cost of Equity of Hai Phong Water JSC (HPW.VN) is 9.00%.
The Cost of Debt of Hai Phong Water JSC (HPW.VN) is 4.40%.

Range Selected
Cost of equity 7.60% - 10.40% 9.00%
Tax rate 20.00% - 20.00% 20.00%
Cost of debt 4.30% - 4.50% 4.40%
WACC 6.0% - 7.8% 6.9%
WACC

HPW.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.51 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.40%
Tax rate 20.00% 20.00%
Debt/Equity ratio 0.62 0.62
Cost of debt 4.30% 4.50%
After-tax WACC 6.0% 7.8%
Selected WACC 6.9%

HPW.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 HPW.VN:

cost_of_equity (9.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.51) + 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.