The WACC of Kim Vi Inox Import Export Production JSC (KVC.VN) is 6.5%.
Range | Selected | |
Cost of equity | 6.3% - 8.1% | 7.2% |
Tax rate | 22.1% - 22.3% | 22.2% |
Cost of debt | 6.6% - 8.0% | 7.3% |
WACC | 5.8% - 7.2% | 6.5% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.38 | 0.41 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.3% | 8.1% |
Tax rate | 22.1% | 22.3% |
Debt/Equity ratio | 0.93 | 0.93 |
Cost of debt | 6.6% | 8.0% |
After-tax WACC | 5.8% | 7.2% |
Selected WACC | 6.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
KVC.VN | Kim Vi Inox Import Export Production JSC | 0.93 | 2.08 | 1.2 |
504646.BO | Bhagwati Autocast Ltd | 0.11 | 0.05 | 0.04 |
531810.BO | Metal Coatings (India) Ltd | 0.03 | 0.05 | 0.05 |
DTL.VN | Dai Thien Loc Corp | 1.42 | 0.06 | 0.03 |
KKC.VN | KKC Metal Joint Stock Company | 0.38 | -0.34 | -0.27 |
LMSH.JK | Lionmesh Prima Tbk PT | 0.05 | -0.25 | -0.24 |
MHL.VN | Minh Huu Lien JSC | 4.6 | 0.81 | 0.18 |
SHE.VN | Son Ha Development of Renewable Energy JSC | 0.6 | 0.54 | 0.37 |
VIS.VN | Viet Nam Italy Steel JSC | 2.79 | 0.33 | 0.1 |
Low | High | |
Unlevered beta | 0.05 | 0.09 |
Relevered beta | 0.07 | 0.12 |
Adjusted relevered beta | 0.38 | 0.41 |
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 KVC.VN:
cost_of_equity (7.20%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.38) + 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.