PMC.VN WACC - Weighted Average Cost of Capital
The WACC of Pharmedic Pharmaceutical Medicinal JSC (PMC.VN) is 8.6%.
| Range | Selected | |
| Cost of equity | 11.1% - 15.1% | 13.1% |
| Tax rate | 20.1% - 20.2% | 20.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 9.5% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.88 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 15.1% |
| Tax rate | 20.1% | 20.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 9.5% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PMC.VN | Pharmedic Pharmaceutical Medicinal JSC | 1.18 | 0.03 | 0.01 |
| DBD.VN | Binh Dinh Pharmaceutical and Medical Equipment JSC | 0.03 | 0.77 | 0.76 |
| DCL.VN | Cuu Long Pharmaceutical JSC | 0.41 | 0.38 | 0.29 |
| DHG.VN | Dhg Pharmaceutical Joint-Stock Co | 0.05 | 0.58 | 0.56 |
| DHT.VN | HaTay Pharmaceutical JSC | 0.07 | 0.57 | 0.54 |
| IMP.VN | Imexpharm Corp | 0.01 | 1.07 | 1.06 |
| JAGSNPHARM.NS | Jagson Pal Pharmaceuticals Ltd | 0.01 | 1.44 | 1.44 |
| MED.VN | Mediplantex National Pharmaceutical JSC | 0.1 | 0.37 | 0.34 |
| PME.VN | Pymepharco JSC | 0.02 | 0.18 | 0.18 |
| TRA.VN | Traphaco JSC | 0.06 | 0.75 | 0.71 |
| VDP.VN | Vidipha Central Pharmaceutical JSC | 0.33 | 0.38 | 0.3 |
| Low | High | |
| Unlevered beta | 0.34 | 0.56 |
| Relevered beta | 0.82 | 1.12 |
| Adjusted relevered beta | 0.88 | 1.08 |
PMC.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 PMC.VN:
cost_of_equity (13.10%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.88) + 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.