The WACC of Phat Dat Real Estate Development Corp (PDR.VN) is 9.8%.
Range | Selected | |
Cost of equity | 8.3% - 13.4% | 10.85% |
Tax rate | 21.3% - 22.3% | 21.8% |
Cost of debt | 5.0% - 12.7% | 8.85% |
WACC | 7.1% - 12.5% | 9.8% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.58 | 0.92 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.3% | 13.4% |
Tax rate | 21.3% | 22.3% |
Debt/Equity ratio | 0.36 | 0.36 |
Cost of debt | 5.0% | 12.7% |
After-tax WACC | 7.1% | 12.5% |
Selected WACC | 9.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PDR.VN | Phat Dat Real Estate Development Corp | 0.36 | 1.8 | 1.41 |
2540.TW | JSL Construction & Development Co Ltd | 0.45 | 0.17 | 0.13 |
ASM.VN | Sao Mai Group Corp | 5.27 | 1.44 | 0.28 |
DTA.VN | De Tam JSC | 1.44 | 0.65 | 0.3 |
KDH.VN | Khang Dien House Trading and Investment JSC | 0.25 | 1.22 | 1.02 |
LDG.VN | LDG Investment JSC | 2.03 | 1.84 | 0.71 |
MPRO.JK | Maha Properti Indonesia Tbk PT | 0.02 | -0.04 | -0.04 |
NBB.VN | 577 Investment Corp | 1.94 | 0.48 | 0.19 |
QCG.VN | Quoc Cuong GiaLai JSC | 0.12 | 1.7 | 1.55 |
SJS.VN | Song Da Urban & Industrial Zone Investment and Development JSC | 0.06 | 0.7 | 0.67 |
Low | High | |
Unlevered beta | 0.29 | 0.68 |
Relevered beta | 0.37 | 0.88 |
Adjusted relevered beta | 0.58 | 0.92 |
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 PDR.VN:
cost_of_equity (10.85%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.58) + 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.