KTC.VN
Kien Giang Trading JSC
Price:  
9.20 
VND
Volume:  
100.00
Viet Nam | N/A
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KTC.VN WACC - Weighted Average Cost of Capital

The WACC of Kien Giang Trading JSC (KTC.VN) is 11.1%.

The Cost of Equity of Kien Giang Trading JSC (KTC.VN) is 12.65%.
The Cost of Debt of Kien Giang Trading JSC (KTC.VN) is 12.05%.

Range Selected
Cost of equity 9.70% - 15.60% 12.65%
Tax rate 12.80% - 13.60% 13.20%
Cost of debt 4.40% - 19.70% 12.05%
WACC 5.7% - 16.6% 11.1%
WACC

KTC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.73 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 15.60%
Tax rate 12.80% 13.60%
Debt/Equity ratio 2.2 2.2
Cost of debt 4.40% 19.70%
After-tax WACC 5.7% 16.6%
Selected WACC 11.1%

KTC.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 KTC.VN:

cost_of_equity (12.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.73) + 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.