MWG.VN
Mobile World Investment Corp
Price:  
62.80 
VND
Volume:  
8,460,600.00
Viet Nam | Specialty Retail
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MWG.VN WACC - Weighted Average Cost of Capital

The WACC of Mobile World Investment Corp (MWG.VN) is 8.1%.

The Cost of Equity of Mobile World Investment Corp (MWG.VN) is 9.40%.
The Cost of Debt of Mobile World Investment Corp (MWG.VN) is 4.85%.

Range Selected
Cost of equity 8.20% - 10.60% 9.40%
Tax rate 26.20% - 29.40% 27.80%
Cost of debt 4.20% - 5.50% 4.85%
WACC 7.1% - 9.1% 8.1%
WACC

MWG.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.58 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.60%
Tax rate 26.20% 29.40%
Debt/Equity ratio 0.29 0.29
Cost of debt 4.20% 5.50%
After-tax WACC 7.1% 9.1%
Selected WACC 8.1%

MWG.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 MWG.VN:

cost_of_equity (9.40%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.58) + 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.