The WACC of Vinacomin Investment, Trading And Service JSC (ITS.VN) is 11.8%.
Range | Selected | |
Cost of equity | 12.1% - 21.0% | 16.55% |
Tax rate | 22.1% - 22.3% | 22.2% |
Cost of debt | 9.1% - 19.7% | 14.4% |
WACC | 7.7% - 16.0% | 11.8% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.99 | 1.64 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.1% | 21.0% |
Tax rate | 22.1% | 22.3% |
Debt/Equity ratio | 7.71 | 7.71 |
Cost of debt | 9.1% | 19.7% |
After-tax WACC | 7.7% | 16.0% |
Selected WACC | 11.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ITS.VN | Vinacomin Investment, Trading And Service JSC | 7.71 | 0.63 | 0.09 |
CMD.VN | Construction Material & Interior Decoration JSC | 0.2 | 1.06 | 0.92 |
HAF.VN | Hanoi Foodstuff JSC | 0.27 | -0.39 | -0.32 |
HTM.VN | Hanoi Trade Joint Stock Corp | 0.28 | 0.63 | 0.51 |
MEL.VN | Me Lin Steel JSC | 4.47 | 1.05 | 0.24 |
SWC.VN | Southern Waterborne Transport Corp | 0.05 | 0.53 | 0.51 |
TDG.VN | Thai Duong Petrol JSC | 6.19 | 1.01 | 0.17 |
TNI.VN | Thanh Nam Group JSC | 2.73 | 1.08 | 0.35 |
Low | High | |
Unlevered beta | 0.22 | 0.38 |
Relevered beta | 0.99 | 1.96 |
Adjusted relevered beta | 0.99 | 1.64 |
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.