The WACC of Lilama 69-1 JSC (L61.VN) is 3.8%.
Range | Selected | |
Cost of equity | 14.7% - 51.1% | 32.9% |
Tax rate | 14.4% - 49.5% | 31.95% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 3.8% - 3.8% | 3.8% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 1.26 | 4.51 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 14.7% | 51.1% |
Tax rate | 14.4% | 49.5% |
Debt/Equity ratio | 30.14 | 30.14 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 3.8% | 3.8% |
Selected WACC | 3.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
L61.VN | Lilama 69-1 JSC | 30.14 | -2.84 | -0.12 |
PTD.VN | Phuc Thinh Design Construction Trading Corp | 4.52 | -1.44 | -0.32 |
S55.VN | Song Da 505 JSC | 1.66 | 0.03 | 0.01 |
SD4.VN | Song Da 4 JSC | 12.75 | -1.06 | -0.1 |
SD6.VN | Song Da 6 JSC | 2.77 | 1.12 | 0.36 |
SJE.VN | Song Da No 11 JSC | 2.09 | 1.1 | 0.43 |
TKC.VN | Tan Ky Construction Real Estate Trading Corp | 35.04 | 1.9 | 0.07 |
V12.VN | Viet Nam Construction JSC No 12 | 0.02 | 0.92 | 0.9 |
VC1.VN | Construction JSC N0 1 | 1.39 | 0.09 | 0.04 |
VC9.VN | Construction JSC No 9 | 1.36 | 0.68 | 0.34 |
VMC.VN | Vimeco JSC | 3.09 | 0.71 | 0.21 |
Low | High | |
Unlevered beta | 0.04 | 0.21 |
Relevered beta | 1.39 | 6.24 |
Adjusted relevered beta | 1.26 | 4.51 |
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 L61.VN:
cost_of_equity (32.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.26) + 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.