PDB.VN WACC - Weighted Average Cost of Capital

The WACC of Dufago Construction Materials Corp (PDB.VN) is 7.8%.

The Cost of Equity of Dufago Construction Materials Corp (PDB.VN) is 8.60%.

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

	Range	Selected
Cost of equity	7.40% - 9.80%	8.60%
Tax rate	35.60% - 40.60%	38.10%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.7% - 8.9%	7.8%

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	0.49	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	9.80%

Tax rate	35.60%	40.60%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	5.90%

After-tax WACC	6.7%	8.9%


Selected WACC	7.8%

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 (8.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.49) + 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.