NCS.VN
Noi Bai Catering Services JSC
Price:  
27,900.00 
VND
Volume:  
3,600.00
Viet Nam | N/A
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NCS.VN WACC - Weighted Average Cost of Capital

The WACC of Noi Bai Catering Services JSC (NCS.VN) is 9.3%.

The Cost of Equity of Noi Bai Catering Services JSC (NCS.VN) is 10.75%.
The Cost of Debt of Noi Bai Catering Services JSC (NCS.VN) is 5.65%.

Range Selected
Cost of equity 8.90% - 12.60% 10.75%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 7.30% 5.65%
WACC 7.5% - 11.0% 9.3%
WACC

NCS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.64 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 12.60%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.3 0.3
Cost of debt 4.00% 7.30%
After-tax WACC 7.5% 11.0%
Selected WACC 9.3%

NCS.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 NCS.VN:

cost_of_equity (10.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.64) + 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.