The WACC of Song Hong Aluminum JSC (NSH.VN) is 6.4%.
Range | Selected | |
Cost of equity | 8.5% - 18.7% | 13.6% |
Tax rate | 22.0% - 25.4% | 23.7% |
Cost of debt | 6.3% - 7.0% | 6.65% |
WACC | 5.4% - 7.3% | 6.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.6 | 1.43 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.5% | 18.7% |
Tax rate | 22.0% | 25.4% |
Debt/Equity ratio | 5.52 | 5.52 |
Cost of debt | 6.3% | 7.0% |
After-tax WACC | 5.4% | 7.3% |
Selected WACC | 6.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NSH.VN | Song Hong Aluminum JSC | 5.52 | 1.32 | 0.25 |
513309.BO | Golkonda Aluminium Extrusions Ltd | 408.95 | -0.09 | 0 |
ALCOM.KL | Alcom Group Bhd | 3.19 | 0.34 | 0.1 |
CENTEXT.NS | Century Extrusions Ltd | 0.27 | 1.21 | 1 |
KKC.VN | KKC Metal Joint Stock Company | 0.4 | -0.37 | -0.28 |
MANAKALUCO.NS | Manaksia Aluminium Co Ltd | 1.32 | 1.64 | 0.81 |
MMP.NS | MMP Industries Ltd | 0.2 | 1.46 | 1.26 |
ORIENTABRA.NS | Orient Abrasives Ltd | 0.04 | 0.41 | 0.4 |
TKU.VN | Tung Kuang Industrial JSC | 3.36 | 0.17 | 0.05 |
Low | High | |
Unlevered beta | 0.13 | 0.37 |
Relevered beta | 0.4 | 1.64 |
Adjusted relevered beta | 0.6 | 1.43 |
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 NSH.VN:
cost_of_equity (13.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.6) + 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.