PDB.VN WACC - Weighted Average Cost of Capital
The WACC of Dufago Construction Materials Corp (PDB.VN) is 8.4%.
| Range | Selected | |
| Cost of equity | 8.0% - 10.7% | 9.35% |
| Tax rate | 35.6% - 40.6% | 38.1% |
| Cost of debt | 4.0% - 5.9% | 4.95% |
| WACC | 7.2% - 9.6% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.56 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 10.7% |
| Tax rate | 35.6% | 40.6% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 5.9% |
| After-tax WACC | 7.2% | 9.6% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PDB.VN | Dufago Construction Materials Corp | 0.17 | 0.95 | 0.87 |
| BHC.VN | Bien Hoa Concrete JSC | 3.54 | 1.27 | 0.41 |
| DCT.VN | Dong Nai Roofsheet & Construction Material JSC | 33.85 | 1.16 | 0.05 |
| DID.VN | DIC - Dong Tien JDC | 1.01 | 1.25 | 0.78 |
| DTC.VN | Dong Trieu Viglacera JSC | 4.44 | -0.07 | -0.02 |
| GKM.VN | Khang Minh Group JSC | 0.42 | 0.63 | 0.5 |
| GMX.VN | My Xuan Brick Tile Pottery and Construction JSC | 0.04 | 0.23 | 0.23 |
| HLY.VN | Viglacera HaLong I JSC | 2.74 | 0.94 | 0.36 |
| MCC.VN | High Grade Brick Tile Corp | 0.04 | -0.7 | -0.68 |
| Low | High | |
| Unlevered beta | 0.25 | 0.4 |
| Relevered beta | 0.34 | 0.49 |
| Adjusted relevered beta | 0.56 | 0.66 |
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 (9.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.56) + 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.