HU4.VN
Hud4 Investment and Construction JSC
Price:  
11,600 
VND
Volume:  
10,400
Viet Nam | Construction

HU4.VN WACC - Weighted Average Cost of Capital

The WACC of Hud4 Investment and Construction JSC (HU4.VN) is 7.8%.

The Cost of Equity of Hud4 Investment and Construction JSC (HU4.VN) is 10.75%.
The Cost of Debt of Hud4 Investment and Construction JSC (HU4.VN) is 9.4%.

RangeSelected
Cost of equity8.5% - 13.0%10.75%
Tax rate27.3% - 32.9%30.1%
Cost of debt4.3% - 14.5%9.4%
WACC4.9% - 10.8%7.8%
WACC

HU4.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.60.88
Additional risk adjustments0.0%0.5%
Cost of equity8.5%13.0%
Tax rate27.3%32.9%
Debt/Equity ratio
2.032.03
Cost of debt4.3%14.5%
After-tax WACC4.9%10.8%
Selected WACC7.8%

HU4.VN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.070.23
Relevered beta0.40.82
Adjusted relevered beta0.60.88

HU4.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 HU4.VN:

cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.6) + 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.