MVC.VN WACC - Weighted Average Cost of Capital
The WACC of Binh Duong Building Materials and Construction Corp (MVC.VN) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.0% - 10.3% | 8.65% |
| Tax rate | 8.2% - 10.4% | 9.3% |
| Cost of debt | 4.0% - 5.5% | 4.75% |
| WACC | 6.3% - 9.1% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.45 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 10.3% |
| Tax rate | 8.2% | 10.4% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 4.0% | 5.5% |
| After-tax WACC | 6.3% | 9.1% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MVC.VN | Binh Duong Building Materials and Construction Corp | 0.29 | 0 | 0 |
| ADG.VN | Clever Group Corp | 0.23 | 0.9 | 0.74 |
| BDT.VN | Dongthap Building Materials & Construction JSC | 2.08 | 0.93 | 0.32 |
| BMJ.VN | Easterns AHP Minerals JSC | 0.04 | 0.17 | 0.16 |
| HWS.VN | Thua Thien Hue Water Supply JSC | 0.46 | 0.16 | 0.11 |
| KSV.VN | Vinacomin Minerals Holding Corp | 0.11 | -1.1 | -1 |
| MSR.VN | Masan High-Tech Materials Corp | 0.66 | 1.32 | 0.83 |
| MTA.VN | Hatinh Minerals and Trading Joint Stock Corp | 0.21 | 1.66 | 1.4 |
| NQN.VN | Quangninh Clean Water JSC | 0.4 | -0.16 | -0.12 |
| YBM.VN | Yen Bai Industry Mineral JSC | 1.65 | -1.15 | -0.46 |
| Low | High | |
| Unlevered beta | 0.07 | 0.22 |
| Relevered beta | 0.18 | 0.45 |
| Adjusted relevered beta | 0.45 | 0.63 |
MVC.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 MVC.VN:
cost_of_equity (8.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.45) + 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.