PEG.VN
Petec Trading and Investment Corp
Price:  
4,200.00 
VND
Volume:  
2,059.00
Viet Nam | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

PEG.VN WACC - Weighted Average Cost of Capital

The WACC of Petec Trading and Investment Corp (PEG.VN) is 8.7%.

The Cost of Equity of Petec Trading and Investment Corp (PEG.VN) is 8.75%.
The Cost of Debt of Petec Trading and Investment Corp (PEG.VN) is 5.65%.

Range Selected
Cost of equity 7.60% - 9.90% 8.75%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.30% - 7.00% 5.65%
WACC 7.6% - 9.9% 8.7%
WACC

PEG.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.51 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 9.90%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.30% 7.00%
After-tax WACC 7.6% 9.9%
Selected WACC 8.7%

PEG.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 PEG.VN:

cost_of_equity (8.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.51) + 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.