The WACC of Phuc Thinh Design Construction Trading Corp (PTD.VN) is 6.4%.
Range | Selected | |
Cost of equity | 6.0% - 9.0% | 7.5% |
Tax rate | 41.3% - 48.6% | 44.95% |
Cost of debt | 7.0% - 15.6% | 11.3% |
WACC | 4.6% - 8.3% | 6.4% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.35 | 0.5 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.0% | 9.0% |
Tax rate | 41.3% | 48.6% |
Debt/Equity ratio | 3.19 | 3.19 |
Cost of debt | 7.0% | 15.6% |
After-tax WACC | 4.6% | 8.3% |
Selected WACC | 6.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PTD.VN | Phuc Thinh Design Construction Trading Corp | 3.19 | -1.33 | -0.47 |
C92.VN | Construction and Investment JSC No 492 | 5.38 | 0 | 0 |
CDC.VN | Chuong Duong Corp | 1.4 | -0.18 | -0.1 |
HU1.VN | HUD1 Investment and Construction JSC | 5.09 | 0.51 | 0.13 |
L62.VN | Lilama 69 - 2 JSC | 9.34 | 1.4 | 0.22 |
LUT.VN | Luong Tai Investment Construction JSC | 15.37 | 0.62 | 0.06 |
MDG.VN | Mien Dong JSC | 0.65 | -0.42 | -0.31 |
MST.VN | MST Investment JSC | 0.69 | 0.42 | 0.3 |
VC1.VN | Construction JSC N0 1 | 1.18 | 0.02 | 0.01 |
VSI.VN | Water Supply Sewerage Construction and Investment JSC | 0.42 | 0.52 | 0.42 |
Low | High | |
Unlevered beta | 0.01 | 0.09 |
Relevered beta | 0.03 | 0.25 |
Adjusted relevered beta | 0.35 | 0.5 |
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 PTD.VN:
cost_of_equity (7.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.35) + 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.