IVS.VN
Vietnam Investment Securities Co
Price:  
9.40 
VND
Volume:  
25,700.00
Viet Nam | Diversified Financial Services
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IVS.VN WACC - Weighted Average Cost of Capital

The WACC of Vietnam Investment Securities Co (IVS.VN) is 9.9%.

The Cost of Equity of Vietnam Investment Securities Co (IVS.VN) is 10.65%.
The Cost of Debt of Vietnam Investment Securities Co (IVS.VN) is 5.00%.

Range Selected
Cost of equity 7.20% - 14.10% 10.65%
Tax rate 14.40% - 19.30% 16.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 12.9% 9.9%
WACC

IVS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.47 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 14.10%
Tax rate 14.40% 19.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 12.9%
Selected WACC 9.9%

IVS.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 IVS.VN:

cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.47) + 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.