The WACC of Portserco Logistics JSC (PRC.VN) is 7.4%.
Range | Selected | |
Cost of equity | 6.5% - 8.8% | 7.65% |
Tax rate | 16.4% - 17.0% | 16.7% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 6.2% - 8.5% | 7.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.4 | 0.48 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.5% | 8.8% |
Tax rate | 16.4% | 17.0% |
Debt/Equity ratio | 0.11 | 0.11 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 6.2% | 8.5% |
Selected WACC | 7.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PRC.VN | Portserco Logistics JSC | 0.11 | 2.24 | 2.05 |
BPTR.JK | Batavia Prosperindo Trans Tbk PT | 4.35 | 0.5 | 0.11 |
DL1.VN | Viet Nam Renewable Energy Group JSC | 0.98 | 1.76 | 0.97 |
HMH.VN | Hai Minh Corp | 0.01 | 0.17 | 0.17 |
LRNA.JK | Eka Sari Lorena Transport Tbk PT | 0.21 | 0.32 | 0.27 |
SDMU.JK | Sidomulyo Selaras Tbk PT | 2.97 | 0.23 | 0.06 |
TRUK.JK | Guna Timur Raya Tbk PT | 0.09 | 0.52 | 0.48 |
VNS.VN | Vietnam Sun Corp | 0.87 | 0.09 | 0.05 |
WEHA.JK | WEHA Transportasi Indonesia Tbk PT | 0.6 | 0.84 | 0.56 |
ZBRA.JK | Zebra Nusantara Tbk PT | 8.81 | 0.41 | 0.05 |
Low | High | |
Unlevered beta | 0.15 | 0.35 |
Relevered beta | 0.1 | 0.22 |
Adjusted relevered beta | 0.4 | 0.48 |
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 PRC.VN:
cost_of_equity (7.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.4) + 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.