PNC.VN WACC - Weighted Average Cost of Capital
The WACC of Phuong Nam Cultural Joint Stock Corp (PNC.VN) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.1% - 10.2% | 9.15% |
| Tax rate | 17.0% - 25.5% | 21.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 10.1% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.57 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 10.2% |
| Tax rate | 17.0% | 25.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 10.1% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PNC.VN | Phuong Nam Cultural Joint Stock Corp | 0 | 0.29 | 0.29 |
| 3686.HK | Clifford Modern Living Holdings Ltd | 0.09 | 0.4 | 0.37 |
| 9271.T | Wagokoro Co Ltd | 0.14 | 0.37 | 0.33 |
| ALT.VN | Alta Co | 0.43 | 0.21 | 0.16 |
| AMD.VN | FLC Stone Mining and Investment JSC | 1.28 | 0.96 | 0.49 |
| DLG.VN | Duc Long Gia Lai Group JSC | 3.4 | 1.28 | 0.36 |
| EVG.VN | Everland Group JSC | 0.45 | 1.68 | 1.26 |
| HCD.VN | Hcd Investment Producing and Trading JSC | 0.58 | 0.97 | 0.68 |
| HID.VN | HALCOM VIETNAM JSC | 2.84 | 0.08 | 0.03 |
| PMS.VN | Petroleum Mechanical JSC | 0.16 | 0.63 | 0.56 |
| Low | High | |
| Unlevered beta | 0.35 | 0.42 |
| Relevered beta | 0.36 | 0.42 |
| Adjusted relevered beta | 0.57 | 0.61 |
PNC.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 PNC.VN:
cost_of_equity (9.15%) = 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.