POT.VN
Post and Telecommunication Equipment JSC
Price:  
19,200.00 
VND
Volume:  
200.00
Viet Nam | Communications Equipment
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POT.VN WACC - Weighted Average Cost of Capital

The WACC of Post and Telecommunication Equipment JSC (POT.VN) is 7.0%.

The Cost of Equity of Post and Telecommunication Equipment JSC (POT.VN) is 8.65%.
The Cost of Debt of Post and Telecommunication Equipment JSC (POT.VN) is 10.25%.

Range Selected
Cost of equity 6.80% - 10.50% 8.65%
Tax rate 30.40% - 43.70% 37.05%
Cost of debt 6.00% - 14.50% 10.25%
WACC 5.1% - 8.9% 7.0%
WACC

POT.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.43 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 10.50%
Tax rate 30.40% 43.70%
Debt/Equity ratio 2.01 2.01
Cost of debt 6.00% 14.50%
After-tax WACC 5.1% 8.9%
Selected WACC 7.0%

POT.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 POT.VN:

cost_of_equity (8.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.43) + 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.