LBM.VN WACC - Weighted Average Cost of Capital
The WACC of Lamdong Minerals and Building Materials JSC (LBM.VN) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.0% | 8% |
| Tax rate | 19.5% - 20.2% | 19.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.7% - 8.6% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.44 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.0% |
| Tax rate | 19.5% | 20.2% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.7% | 8.6% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LBM.VN | Lamdong Minerals and Building Materials JSC | 0.09 | 1.19 | 1.11 |
| ACC.VN | ACC Binh Duong Investment and Construction JSC | 0.43 | -0.11 | -0.08 |
| CTI.VN | Cuong Thuan Idico Development Investment Corp | 2.2 | 0.79 | 0.29 |
| DCT.VN | Dong Nai Roofsheet & Construction Material JSC | 33.84 | 1.16 | 0.04 |
| DID.VN | DIC - Dong Tien JDC | 1.17 | 1.25 | 0.65 |
| DTC.VN | Dong Trieu Viglacera JSC | 4.25 | 0.52 | 0.12 |
| FCM.VN | Fecon Mining JSC | 0.62 | -0.16 | -0.11 |
| GMX.VN | My Xuan Brick Tile Pottery and Construction JSC | 0.04 | 0.24 | 0.23 |
| HVX.VN | Vicem Hai Van Cement JSC | 1.02 | 0.44 | 0.24 |
| SCJ.VN | Saison Cement JSC | 9.29 | 1.59 | 0.19 |
| Low | High | |
| Unlevered beta | 0.16 | 0.24 |
| Relevered beta | 0.16 | 0.25 |
| Adjusted relevered beta | 0.44 | 0.5 |
LBM.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 LBM.VN:
cost_of_equity (8.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.44) + 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.