PTD.VN
Phuc Thinh Design Construction Trading Corp
Price:  
6,800 
VND
Volume:  
100
Viet Nam | Construction & Engineering

PTD.VN WACC - Weighted Average Cost of Capital

The WACC of Phuc Thinh Design Construction Trading Corp (PTD.VN) is 6.4%.

The Cost of Equity of Phuc Thinh Design Construction Trading Corp (PTD.VN) is 7.5%.
The Cost of Debt of Phuc Thinh Design Construction Trading Corp (PTD.VN) is 11.3%.

RangeSelected
Cost of equity6.0% - 9.0%7.5%
Tax rate41.3% - 48.6%44.95%
Cost of debt7.0% - 15.6%11.3%
WACC4.6% - 8.3%6.4%
WACC

PTD.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.350.5
Additional risk adjustments0.0%0.5%
Cost of equity6.0%9.0%
Tax rate41.3%48.6%
Debt/Equity ratio
3.193.19
Cost of debt7.0%15.6%
After-tax WACC4.6%8.3%
Selected WACC6.4%

PTD.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 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.