PSC.VN WACC - Weighted Average Cost of Capital
The WACC of Petrolimex Saigon Transportation and Service JSC (PSC.VN) is 7.5%.
| Range | Selected | |
| Cost of equity | 7.7% - 9.5% | 8.6% |
| Tax rate | 23.7% - 34.7% | 29.2% |
| Cost of debt | 4.5% - 8.1% | 6.3% |
| WACC | 6.6% - 8.4% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.52 | 0.54 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 9.5% |
| Tax rate | 23.7% | 34.7% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 4.5% | 8.1% |
| After-tax WACC | 6.6% | 8.4% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PSC.VN | Petrolimex Saigon Transportation and Service JSC | 0.35 | 0.33 | 0.26 |
| 92.HK | Champion Technology Holdings Ltd | 0.01 | 0.2 | 0.2 |
| 979.HK | Green Energy Group Ltd | 0.01 | 0.84 | 0.83 |
| APP.VN | Additives and Petroleum Products JSC | 0.44 | 0 | 0 |
| CMI.VN | CMISTONE Viet Nam JSC | 12.09 | 0.45 | 0.04 |
| HTC.VN | HocMon Trade JSC | 0.13 | 0.27 | 0.24 |
| OIL.VN | Petrovietnam Oil Corp | 0.77 | 1.5 | 0.95 |
| PCT.VN | Viet Nam Gas and Chemicals Transportation Corp | 2.02 | 0.6 | 0.24 |
| PPY.VN | PetroVietnam Oil Phu Yen JSC | 0.47 | -0.17 | -0.12 |
| VMG.VN | Vung Tau Petroleum Trading and Services JSC | 2.13 | 1.13 | 0.43 |
| Low | High | |
| Unlevered beta | 0.22 | 0.25 |
| Relevered beta | 0.28 | 0.31 |
| Adjusted relevered beta | 0.52 | 0.54 |
PSC.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 PSC.VN:
cost_of_equity (8.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.52) + 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.