PGI.VN WACC - Weighted Average Cost of Capital
The WACC of Petrolimex Insurance Corp (PGI.VN) is 8.8%.
| Range | Selected | |
| Cost of equity | 8.8% - 11.3% | 10.05% |
| Tax rate | 19.3% - 19.4% | 19.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 9.8% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.64 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 11.3% |
| Tax rate | 19.3% | 19.4% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 9.8% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PGI.VN | Petrolimex Insurance Corp | 0.26 | 0.21 | 0.17 |
| 8020.SR | Malath Cooperative Insurance Company SJSC | 0 | 1.39 | 1.38 |
| 8270.SR | Buruj Cooperative Insurance Co SJSC | 0 | 1.6 | 1.6 |
| ACKO.ME | Asko-Strakhovanie PAO | 0.01 | 0.32 | 0.32 |
| ASRM.JK | Asuransi Ramayana Tbk PT | 0.44 | 0.5 | 0.37 |
| BIC.VN | BIDV Insurance Corp | 0.07 | 0.41 | 0.39 |
| LPGI.JK | Lippo General Insurance Tbk PT | 0.04 | 0.41 | 0.4 |
| NKI.BK | Navakij Insurance PCL | 0.04 | 0.16 | 0.16 |
| PTI.VN | Post & Telecommunication Joint Stock Insurance Corp | 0.12 | 0.88 | 0.8 |
| TVI.BK | Thaivivat Insurance PCL | 0 | 0.59 | 0.59 |
| Low | High | |
| Unlevered beta | 0.38 | 0.48 |
| Relevered beta | 0.46 | 0.58 |
| Adjusted relevered beta | 0.64 | 0.72 |
PGI.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 PGI.VN:
cost_of_equity (10.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.64) + 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.