POM.VN
Pomina Steel Corp
Price:  
1,700 
VND
Volume:  
951,800
Viet Nam | Metals & Mining

POM.VN WACC - Weighted Average Cost of Capital

The WACC of Pomina Steel Corp (POM.VN) is 7.1%.

The Cost of Equity of Pomina Steel Corp (POM.VN) is 12.1%.
The Cost of Debt of Pomina Steel Corp (POM.VN) is 6.75%.

RangeSelected
Cost of equity10.1% - 14.1%12.1%
Tax rate0.0% - 6.2%3.1%
Cost of debt5.5% - 8.0%6.75%
WACC6.0% - 8.2%7.1%
WACC

POM.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.770.98
Additional risk adjustments0.0%0.5%
Cost of equity10.1%14.1%
Tax rate0.0%6.2%
Debt/Equity ratio
7.937.93
Cost of debt5.5%8.0%
After-tax WACC6.0%8.2%
Selected WACC7.1%

POM.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 POM.VN:

cost_of_equity (12.10%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.77) + 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.