ITS.VN
Vinacomin Investment, Trading And Service JSC
Price:  
5,300 
VND
Volume:  
8,400
Viet Nam | Wholesale Trade

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 16.55%.
The Cost of Debt of Vinacomin Investment, Trading And Service JSC (ITS.VN) is 14.4%.

RangeSelected
Cost of equity12.1% - 21.0%16.55%
Tax rate22.1% - 22.3%22.2%
Cost of debt9.1% - 19.7%14.4%
WACC7.7% - 16.0%11.8%
WACC

ITS.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.991.64
Additional risk adjustments0.0%0.5%
Cost of equity12.1%21.0%
Tax rate22.1%22.3%
Debt/Equity ratio
7.717.71
Cost of debt9.1%19.7%
After-tax WACC7.7%16.0%
Selected WACC11.8%

ITS.VN WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.220.38
Relevered beta0.991.96
Adjusted relevered beta0.991.64

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 (16.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.99) + 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.