MSR.VN
Masan High-Tech Materials Corp
Price:  
18.80 
VND
Volume:  
6,642,238.00
Viet Nam | N/A
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MSR.VN WACC - Weighted Average Cost of Capital

The WACC of Masan High-Tech Materials Corp (MSR.VN) is 8.0%.

The Cost of Equity of Masan High-Tech Materials Corp (MSR.VN) is 9.15%.
The Cost of Debt of Masan High-Tech Materials Corp (MSR.VN) is 8.00%.

Range Selected
Cost of equity 7.50% - 10.80% 9.15%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 7.00% - 9.00% 8.00%
WACC 6.7% - 9.3% 8.0%
WACC

MSR.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.5 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.80%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.66 0.66
Cost of debt 7.00% 9.00%
After-tax WACC 6.7% 9.3%
Selected WACC 8.0%

MSR.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 MSR.VN:

cost_of_equity (9.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.5) + 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.