PTL.VN WACC - Weighted Average Cost of Capital

The WACC of Petro Capital and Infrastructure Investment JSC (PTL.VN) is 11.7%.

The Cost of Equity of Petro Capital and Infrastructure Investment JSC (PTL.VN) is 14.30%.

The Cost of Debt of Petro Capital and Infrastructure Investment JSC (PTL.VN) is 6.40%.

	Range	Selected
Cost of equity	11.80% - 16.80%	14.30%
Tax rate	22.10% - 22.30%	22.20%
Cost of debt	6.40% - 6.40%	6.40%
WACC	9.9% - 13.5%	11.7%

WACC

PTL.VN WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	9.5%	10.5%
Adjusted beta	0.96	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	16.80%

Tax rate	22.10%	22.30%
Debt/Equity ratio	0.38	0.38
Cost of debt	6.40%	6.40%

After-tax WACC	9.9%	13.5%


Selected WACC	11.7%

PTL.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 PTL.VN:

cost_of_equity (14.30%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.96) + 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.