LIC.VN WACC - Weighted Average Cost of Capital
The WACC of Licogi Corporation JSC (LIC.VN) is 11.8%.
| Range | Selected | |
| Cost of equity | 10.1% - 13.1% | 11.6% |
| Tax rate | 14.8% - 22.8% | 18.8% |
| Cost of debt | 8.0% - 22.7% | 15.35% |
| WACC | 8.7% - 15.0% | 11.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.78 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 13.1% |
| Tax rate | 14.8% | 22.8% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 8.0% | 22.7% |
| After-tax WACC | 8.7% | 15.0% |
| Selected WACC | 11.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LIC.VN | Licogi Corporation JSC | 0.72 | 6.55 | 4.07 |
| DP1.VN | Central Pharmaceutical CPC1 JSC | 0.42 | 0.91 | 0.67 |
| HDM.VN | Hue Textile Garment JSC | 0.66 | 0.98 | 0.63 |
| HNF.VN | Huunghi Food JSC | 0.81 | 0.48 | 0.28 |
| PPH.VN | Phong Phu Corp | 0.47 | 0.95 | 0.68 |
| SKV.VN | Khanh Hoa Salanganes Nest Soft Drink JSC | 0.26 | 0.52 | 0.42 |
| TBD.VN | Dong Anh Electrical Equipment Corporation JSC | 0.22 | 0.39 | 0.33 |
| THP.VN | Thuan Phuoc Seafoods and Trading Corp | 4.33 | 0.69 | 0.15 |
| TNB.VN | VNSTEEL-Nha Be Steel JSC | 1.02 | 0.74 | 0.4 |
| VCA.VN | Vnsteel Vicasa JSC | 0.4 | 0.77 | 0.58 |
| Low | High | |
| Unlevered beta | 0.41 | 0.6 |
| Relevered beta | 0.67 | 0.84 |
| Adjusted relevered beta | 0.78 | 0.89 |
LIC.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 LIC.VN:
cost_of_equity (11.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.78) + 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.