KSD.VN
DNA Investment Joint Stock Corp
Price:  
5,800.00 
VND
Volume:  
5,100.00
Viet Nam | Construction Materials
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KSD.VN WACC - Weighted Average Cost of Capital

The WACC of DNA Investment Joint Stock Corp (KSD.VN) is 9.0%.

The Cost of Equity of DNA Investment Joint Stock Corp (KSD.VN) is 9.05%.
The Cost of Debt of DNA Investment Joint Stock Corp (KSD.VN) is 7.00%.

Range Selected
Cost of equity 8.00% - 10.10% 9.05%
Tax rate 10.50% - 20.00% 15.25%
Cost of debt 7.00% - 7.00% 7.00%
WACC 8.0% - 10.1% 9.0%
WACC

KSD.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.56 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 10.10%
Tax rate 10.50% 20.00%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 7.00%
After-tax WACC 8.0% 10.1%
Selected WACC 9.0%

KSD.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 KSD.VN:

cost_of_equity (9.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.56) + 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.