NAV.VN WACC - Weighted Average Cost of Capital
The WACC of Namviet JSC (NAV.VN) is 7.9%.
| Range | Selected | |
| Cost of equity | 9.9% - 12.6% | 11.25% |
| Tax rate | 9.3% - 9.9% | 9.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 8.6% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.75 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 12.6% |
| Tax rate | 9.3% | 9.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 8.6% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NAV.VN | Namviet JSC | 0.95 | 0.4 | 0.21 |
| BHC.VN | Bien Hoa Concrete JSC | 3.54 | 1.27 | 0.3 |
| DID.VN | DIC - Dong Tien JDC | 1.04 | 1.25 | 0.65 |
| GKM.VN | Khang Minh Group JSC | 0.46 | 0.57 | 0.4 |
| GMX.VN | My Xuan Brick Tile Pottery and Construction JSC | 0.04 | 0.22 | 0.21 |
| HLY.VN | Viglacera HaLong I JSC | 2.33 | 1.08 | 0.35 |
| KSD.VN | DNA Investment Joint Stock Corp | 0.01 | 0.79 | 0.79 |
| MCC.VN | High Grade Brick Tile Corp | 0.04 | -0.7 | -0.67 |
| PDB.VN | Dufago Construction Materials Corp | 0.16 | 0.9 | 0.78 |
| Low | High | |
| Unlevered beta | 0.31 | 0.39 |
| Relevered beta | 0.63 | 0.76 |
| Adjusted relevered beta | 0.75 | 0.84 |
NAV.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 NAV.VN:
cost_of_equity (11.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.75) + 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.