PDB.VN
Dufago Construction Materials Corp
Price:  
12,600.00 
VND
Volume:  
29,400.00
Viet Nam | Construction Materials
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PDB.VN WACC - Weighted Average Cost of Capital

The WACC of Dufago Construction Materials Corp (PDB.VN) is 8.5%.

The Cost of Equity of Dufago Construction Materials Corp (PDB.VN) is 9.45%.
The Cost of Debt of Dufago Construction Materials Corp (PDB.VN) is 4.95%.

Range Selected
Cost of equity 8.20% - 10.70% 9.45%
Tax rate 35.60% - 40.60% 38.10%
Cost of debt 4.00% - 5.90% 4.95%
WACC 7.4% - 9.7% 8.5%
WACC

PDB.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.57 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.70%
Tax rate 35.60% 40.60%
Debt/Equity ratio 0.16 0.16
Cost of debt 4.00% 5.90%
After-tax WACC 7.4% 9.7%
Selected WACC 8.5%

PDB.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 PDB.VN:

cost_of_equity (9.45%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.57) + 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.