PVR.VN WACC - Weighted Average Cost of Capital
The WACC of Ha Noi PVR Investment JSC (PVR.VN) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.4% - 13.7% | 11.05% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.4% - 11.5% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.6 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 13.7% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.4% | 11.5% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PVR.VN | Ha Noi PVR Investment JSC | 0.28 | 0 | 0 |
| 508996.BO | Satra Properties (India) Ltd | 5.72 | 0.76 | 0.14 |
| CEO.VN | CEO Group JSC | 0.08 | 1.71 | 1.61 |
| CIG.VN | Coma 18 JSC | 0.43 | 0.18 | 0.14 |
| CLG.VN | Cotec Investment and Land House Development JSC | 2.46 | -0.04 | -0.01 |
| D11.VN | Real Estate 11 JSC | 0.09 | 0.23 | 0.21 |
| HQC.VN | Hoang Quan Consulting Trading Service Real Estate Corp | 0.96 | 1.24 | 0.71 |
| IDVP.ME | Invest-Development PAO | 0 | 0.82 | 0.81 |
| MDX.BK | MDX PCL | 0.09 | 1.67 | 1.56 |
| SGR.VN | Saigon Real Estate JSC | 0.17 | 1.74 | 1.53 |
| VIC.VN | Vingroup JSC | 0.66 | 0.61 | 0.41 |
| Low | High | |
| Unlevered beta | 0.21 | 0.71 |
| Relevered beta | 0.4 | 0.91 |
| Adjusted relevered beta | 0.6 | 0.94 |
PVR.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 PVR.VN:
cost_of_equity (11.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.6) + 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.