MCG.VN WACC - Weighted Average Cost of Capital
The WACC of Viet Nam Mechanization Electrification and Construction JSC (MCG.VN) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.1% - 9.0% | 7.05% |
| Tax rate | 0.1% - 0.9% | 0.5% |
| Cost of debt | 5.0% - 6.1% | 5.55% |
| WACC | 5.0% - 6.5% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.09 | 0.35 |
| Additional risk adjustments | 1.5% | 2.0% |
| Cost of equity | 5.1% | 9.0% |
| Tax rate | 0.1% | 0.9% |
| Debt/Equity ratio | 5.41 | 5.41 |
| Cost of debt | 5.0% | 6.1% |
| After-tax WACC | 5.0% | 6.5% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MCG.VN | Viet Nam Mechanization Electrification and Construction JSC | 5.41 | 6.22 | 0.97 |
| CX8.VN | Constrexim No 8 Investment and Construction JSC | 0.83 | -0.25 | -0.14 |
| DIH.VN | Development Investment Construction Hoi An JSC | 3.8 | 0.38 | 0.08 |
| HU3.VN | HUD3 Investment and Construction JSC | 0.43 | 0 | 0 |
| KTT.VN | KTT Investment Group JSC | 44.16 | 0.48 | 0.01 |
| LM7.VN | Lilama 7 JSC | 6.63 | -1.5 | -0.2 |
| QTC.VN | Quang Nam Construction Transportation JSC | 0.08 | -0.25 | -0.24 |
| V21.VN | Vinaconex 21 JSC | 0.69 | 0.33 | 0.2 |
| VC7.VN | BGI Group JSC | 0.14 | 1.65 | 1.45 |
| VE4.VN | Vneco4 Electricity Construction JSC | 0.09 | -0.56 | -0.52 |
| VE8.VN | Vneco8 Electricity Construction JSC | 16.84 | 0.05 | 0 |
| Low | High | |
| Unlevered beta | 0 | 0.01 |
| Relevered beta | -0.36 | 0.03 |
| Adjusted relevered beta | 0.09 | 0.35 |
MCG.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 MCG.VN:
cost_of_equity (7.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.09) + risk_adjustments (1.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.