ITS.VN
Vinacomin Investment, Trading And Service JSC
Price:  
6.10 
VND
Volume:  
66,000.00
Viet Nam | N/A
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ITS.VN WACC - Weighted Average Cost of Capital

The WACC of Vinacomin Investment, Trading And Service JSC (ITS.VN) is 11.8%.

The Cost of Equity of Vinacomin Investment, Trading And Service JSC (ITS.VN) is 15.55%.
The Cost of Debt of Vinacomin Investment, Trading And Service JSC (ITS.VN) is 14.40%.

Range Selected
Cost of equity 11.80% - 19.30% 15.55%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 9.10% - 19.70% 14.40%
WACC 7.7% - 15.9% 11.8%
WACC

ITS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.95 1.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 19.30%
Tax rate 22.10% 22.30%
Debt/Equity ratio 6.29 6.29
Cost of debt 9.10% 19.70%
After-tax WACC 7.7% 15.9%
Selected WACC 11.8%

ITS.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 ITS.VN:

cost_of_equity (15.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.95) + 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.