MDC.VN WACC - Weighted Average Cost of Capital
The WACC of Vinacomin Mong Duong Coal JSC (MDC.VN) is 7.7%.
| Range | Selected | |
| Cost of equity | 9.7% - 18.6% | 14.15% |
| Tax rate | 17.8% - 21.8% | 19.8% |
| Cost of debt | 4.0% - 5.7% | 4.85% |
| WACC | 5.7% - 9.7% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.73 | 1.42 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 18.6% |
| Tax rate | 17.8% | 21.8% |
| Debt/Equity ratio | 1.71 | 1.71 |
| Cost of debt | 4.0% | 5.7% |
| After-tax WACC | 5.7% | 9.7% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MDC.VN | Vinacomin Mong Duong Coal JSC | 1.71 | -0.29 | -0.12 |
| 65.HK | Grand Ocean Advanced Resources Co Ltd | 0 | 0.86 | 0.86 |
| CNKO.JK | Exploitasi Energi Indonesia Tbk PT | 0.58 | 1.12 | 0.77 |
| HLC.VN | Vinacomin Ha Lam Coal JSC | 2.14 | 0.32 | 0.12 |
| IKW.AX | Ikwezi Mining Ltd | 0.03 | 0.97 | 0.95 |
| NBC.VN | Vinacomin NuiBeo Coal JSC | 2.93 | 0.74 | 0.22 |
| PEN.AX | Peninsula Energy Ltd | 0 | 1.3 | 1.3 |
| TC6.VN | Vinacomin Coc Sau Coal JSC | 1.24 | 1.27 | 0.64 |
| TDN.VN | Vinacomin Deo Nai Coal JSC | 1.27 | 0.55 | 0.28 |
| THT.VN | Vinacomin HaTu Coal JSC | 1.76 | 0.47 | 0.2 |
| Low | High | |
| Unlevered beta | 0.26 | 0.69 |
| Relevered beta | 0.6 | 1.63 |
| Adjusted relevered beta | 0.73 | 1.42 |
MDC.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 MDC.VN:
cost_of_equity (14.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.73) + 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.