PTH.VN
Petrolimex Hatay Transportation and Service JSC
Price:  
10.10 
VND
Volume:  
1,078.00
Viet Nam | N/A
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PTH.VN WACC - Weighted Average Cost of Capital

The WACC of Petrolimex Hatay Transportation and Service JSC (PTH.VN) is 7.9%.

The Cost of Equity of Petrolimex Hatay Transportation and Service JSC (PTH.VN) is 8.40%.
The Cost of Debt of Petrolimex Hatay Transportation and Service JSC (PTH.VN) is 7.80%.

Range Selected
Cost of equity 7.10% - 9.70% 8.40%
Tax rate 20.80% - 20.90% 20.85%
Cost of debt 4.50% - 11.10% 7.80%
WACC 6.3% - 9.5% 7.9%
WACC

PTH.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.46 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.70%
Tax rate 20.80% 20.90%
Debt/Equity ratio 0.28 0.28
Cost of debt 4.50% 11.10%
After-tax WACC 6.3% 9.5%
Selected WACC 7.9%

PTH.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 PTH.VN:

cost_of_equity (8.40%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.46) + 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.