PHC.VN
Phuc Hung Holdings Construction JSC
Price:  
5.05 
VND
Volume:  
21,300.00
Viet Nam | Construction & Engineering
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PHC.VN WACC - Weighted Average Cost of Capital

The WACC of Phuc Hung Holdings Construction JSC (PHC.VN) is 4.8%.

The Cost of Equity of Phuc Hung Holdings Construction JSC (PHC.VN) is 9.90%.
The Cost of Debt of Phuc Hung Holdings Construction JSC (PHC.VN) is 5.50%.

Range Selected
Cost of equity 8.10% - 11.70% 9.90%
Tax rate 24.00% - 31.10% 27.55%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.8% - 5.9% 4.8%
WACC

PHC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.57 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 11.70%
Tax rate 24.00% 31.10%
Debt/Equity ratio 5.56 5.56
Cost of debt 4.00% 7.00%
After-tax WACC 3.8% 5.9%
Selected WACC 4.8%

PHC.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 PHC.VN:

cost_of_equity (9.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.57) + 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.