NVT.VN
Ninh Van Bay Travel Real Estate JSC
Price:  
VND
Volume:  
1,000
Viet Nam | Real Estate Management & Development

NVT.VN WACC - Weighted Average Cost of Capital

The WACC of Ninh Van Bay Travel Real Estate JSC (NVT.VN) is 9.8%.

The Cost of Equity of Ninh Van Bay Travel Real Estate JSC (NVT.VN) is 10.45%.
The Cost of Debt of Ninh Van Bay Travel Real Estate JSC (NVT.VN) is 12.4%.

RangeSelected
Cost of equity9.3% - 11.6%10.45%
Tax rate29.9% - 36.4%33.15%
Cost of debt7.0% - 17.8%12.4%
WACC8.2% - 11.5%9.8%
WACC

NVT.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.690.75
Additional risk adjustments0.0%0.5%
Cost of equity9.3%11.6%
Tax rate29.9%36.4%
Debt/Equity ratio
0.340.34
Cost of debt7.0%17.8%
After-tax WACC8.2%11.5%
Selected WACC9.8%

NVT.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 NVT.VN:

cost_of_equity (10.45%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.69) + 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.