PCC.VN
Petrolimex Construction 1 JSC Group
Price:  
22.30 
VND
Volume:  
400.00
Viet Nam | N/A
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PCC.VN WACC - Weighted Average Cost of Capital

The WACC of Petrolimex Construction 1 JSC Group (PCC.VN) is 8.4%.

The Cost of Equity of Petrolimex Construction 1 JSC Group (PCC.VN) is 11.45%.
The Cost of Debt of Petrolimex Construction 1 JSC Group (PCC.VN) is 6.65%.

Range Selected
Cost of equity 9.70% - 13.20% 11.45%
Tax rate 26.10% - 27.40% 26.75%
Cost of debt 4.00% - 9.30% 6.65%
WACC 6.6% - 10.3% 8.4%
WACC

PCC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.73 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.20%
Tax rate 26.10% 27.40%
Debt/Equity ratio 0.84 0.84
Cost of debt 4.00% 9.30%
After-tax WACC 6.6% 10.3%
Selected WACC 8.4%

PCC.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 PCC.VN:

cost_of_equity (11.45%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.73) + 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.