HVT.VN WACC - Weighted Average Cost of Capital
The WACC of Viet Tri Chemical JSC (HVT.VN) is 8.2%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.1% | 9.3% |
| Tax rate | 20.1% - 20.1% | 20.1% |
| Cost of debt | 4.0% - 5.9% | 4.95% |
| WACC | 6.6% - 9.8% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.5 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.1% |
| Tax rate | 20.1% | 20.1% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.0% | 5.9% |
| After-tax WACC | 6.6% | 9.8% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HVT.VN | Viet Tri Chemical JSC | 0.26 | 0.72 | 0.6 |
| CSV.VN | South Basic Chemicals JSC | 0.03 | 1.59 | 1.55 |
| DNP.VN | Dongnai Plastic JSC | 3.08 | 0.6 | 0.17 |
| DTT.VN | Do Thanh Technology Corp | 0.19 | -1.02 | -0.89 |
| HDA.VN | Dong A Paint JSC | 0.72 | 0.37 | 0.24 |
| NHP.VN | NHP Production Import Export JSC | 0.35 | 0.84 | 0.66 |
| PHR.VN | Phuoc Hoa Rubber JSC | 0.01 | 1.5 | 1.49 |
| PLP.VN | Pha Le Plastics Manufacturing and Technology JSC | 4.14 | 0.38 | 0.09 |
| RDP.VN | Rang Dong Holding JSC | 5.61 | 2.02 | 0.37 |
| SDN.VN | DongNai Paint Corp | 0.21 | 0.8 | 0.68 |
| Low | High | |
| Unlevered beta | 0.32 | 0.62 |
| Relevered beta | 0.25 | 0.55 |
| Adjusted relevered beta | 0.5 | 0.7 |
HVT.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 HVT.VN:
cost_of_equity (9.30%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.5) + 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.