KMT.VN WACC - Weighted Average Cost of Capital
The WACC of Central Vietnam Metal Corp (KMT.VN) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.1% - 11.1% | 9.6% |
| Tax rate | 30.3% - 32.9% | 31.6% |
| Cost of debt | 6.7% - 14.5% | 10.6% |
| WACC | 5.2% - 9.9% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.57 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 11.1% |
| Tax rate | 30.3% | 32.9% |
| Debt/Equity ratio | 5.92 | 5.92 |
| Cost of debt | 6.7% | 14.5% |
| After-tax WACC | 5.2% | 9.9% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KMT.VN | Central Vietnam Metal Corp | 5.92 | 0.47 | 0.09 |
| 387.HK | Leeport (Holdings) Ltd | 1.07 | -0.13 | -0.07 |
| 537254.BO | RCI Industries & Technologies Ltd | 30.4 | 1.69 | 0.08 |
| 599.HK | E.Bon Holdings Ltd | 0.9 | 0.09 | 0.06 |
| ARM.VN | General Aviation Import Export JSC | 0.37 | -1.02 | -0.81 |
| FID.VN | Vietnam Enterprise Investment and Development JSC | 1.07 | 0.22 | 0.13 |
| PIT.VN | Petrolimex International Trading JSC | 2.2 | 0.75 | 0.3 |
| PSW.VN | South West PetroVietnam Fertilizer and Chemicals JSC | 0.12 | 0.69 | 0.64 |
| SMA.VN | Saigon Machinery Spare Parts JSC | 0.99 | -0.15 | -0.09 |
| VTV.VN | Vicem Energy and Environment JSC | 0.89 | 1.05 | 0.65 |
| Low | High | |
| Unlevered beta | 0.07 | 0.11 |
| Relevered beta | 0.36 | 0.55 |
| Adjusted relevered beta | 0.57 | 0.7 |
KMT.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 KMT.VN:
cost_of_equity (9.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.57) + 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.