ORS.VN WACC - Weighted Average Cost of Capital

The WACC of Tien Phong Securities Corporation (ORS.VN) is 14.0%.

The Cost of Equity of Tien Phong Securities Corporation (ORS.VN) is 27.60%.

The Cost of Debt of Tien Phong Securities Corporation (ORS.VN) is 10.20%.

	Range	Selected
Cost of equity	22.70% - 32.50%	27.60%
Tax rate	20.50% - 21.70%	21.10%
Cost of debt	5.90% - 14.50%	10.20%
WACC	10.2% - 17.8%	14.0%

WACC

ORS.VN WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	9.5%	10.5%
Adjusted beta	2.1	2.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.70%	32.50%

Tax rate	20.50%	21.70%
Debt/Equity ratio	2.29	2.29
Cost of debt	5.90%	14.50%

After-tax WACC	10.2%	17.8%


Selected WACC	14.0%

ORS.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 ORS.VN:

cost_of_equity (27.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (2.1) + 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.