NDX.VN
Danang Housing Development JSC
Price:  
5,000.00 
VND
Volume:  
41,500.00
Viet Nam | N/A
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NDX.VN WACC - Weighted Average Cost of Capital

The WACC of Danang Housing Development JSC (NDX.VN) is 7.2%.

The Cost of Equity of Danang Housing Development JSC (NDX.VN) is 9.35%.
The Cost of Debt of Danang Housing Development JSC (NDX.VN) is 7.00%.

Range Selected
Cost of equity 7.30% - 11.40% 9.35%
Tax rate 22.80% - 25.10% 23.95%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.3% - 8.2% 7.2%
WACC

NDX.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.48 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 11.40%
Tax rate 22.80% 25.10%
Debt/Equity ratio 1.09 1.09
Cost of debt 7.00% 7.00%
After-tax WACC 6.3% 8.2%
Selected WACC 7.2%

NDX.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 NDX.VN:

cost_of_equity (9.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.48) + 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.