PXL.VN
Long Son Petroleum Industrial Zone Investment JSC
Price:  
18,400.00 
VND
Volume:  
1,246,700.00
Viet Nam | Construction & Engineering
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PXL.VN WACC - Weighted Average Cost of Capital

The WACC of Long Son Petroleum Industrial Zone Investment JSC (PXL.VN) is 7.5%.

The Cost of Equity of Long Son Petroleum Industrial Zone Investment JSC (PXL.VN) is 11.50%.
The Cost of Debt of Long Son Petroleum Industrial Zone Investment JSC (PXL.VN) is 5.00%.

Range Selected
Cost of equity 8.30% - 14.70% 11.50%
Tax rate 21.50% - 36.60% 29.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 8.9% 7.5%
WACC

PXL.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.58 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 14.70%
Tax rate 21.50% 36.60%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 8.9%
Selected WACC 7.5%

PXL.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 PXL.VN:

cost_of_equity (11.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.58) + 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.