MML.VN WACC - Weighted Average Cost of Capital
The WACC of Masan Meatlife Corp (MML.VN) is 10.0%.
| Range | Selected | |
| Cost of equity | 8.0% - 12.3% | 10.15% |
| Tax rate | 7.4% - 17.5% | 12.45% |
| Cost of debt | 7.9% - 14.5% | 11.2% |
| WACC | 7.8% - 12.2% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.55 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 12.3% |
| Tax rate | 7.4% | 17.5% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 7.9% | 14.5% |
| After-tax WACC | 7.8% | 12.2% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MML.VN | Masan Meatlife Corp | 0.43 | 1.02 | 0.74 |
| APF.VN | Quang Ngai Agricultural Products and Foodstuff JSC | 1.3 | 0.51 | 0.24 |
| LTG.VN | Loc Troi Group JSC | 7.54 | 1.63 | 0.21 |
| M10.VN | Garment 10 Corporation - JSC | 1.05 | 0.41 | 0.21 |
| MNB.VN | Nha Be Garment Corp JSC | 3.14 | 0.23 | 0.06 |
| QNS.VN | Quang Ngai Sugar JSC | 0.15 | 0.79 | 0.7 |
| VGG.VN | Viet Tien Garment Corp | 0.01 | 0.42 | 0.42 |
| VSF.VN | Vietnam Southern Food Corporation JSC | 0.13 | 1.4 | 1.26 |
| VSN.VN | Vissan JSC | 0.17 | 0.28 | 0.24 |
| Low | High | |
| Unlevered beta | 0.24 | 0.38 |
| Relevered beta | 0.33 | 0.73 |
| Adjusted relevered beta | 0.55 | 0.82 |
MML.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 MML.VN:
cost_of_equity (10.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.55) + 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.