RCC.VN
Railway Construction Corporation JSC
Price:  
22,100.00 
VND
Volume:  
100.00
Viet Nam | N/A
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RCC.VN WACC - Weighted Average Cost of Capital

The WACC of Railway Construction Corporation JSC (RCC.VN) is 11.1%.

The Cost of Equity of Railway Construction Corporation JSC (RCC.VN) is 10.40%.
The Cost of Debt of Railway Construction Corporation JSC (RCC.VN) is 15.70%.

Range Selected
Cost of equity 8.70% - 12.10% 10.40%
Tax rate 17.20% - 20.90% 19.05%
Cost of debt 8.70% - 22.70% 15.70%
WACC 8.2% - 14.0% 11.1%
WACC

RCC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.63 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 12.10%
Tax rate 17.20% 20.90%
Debt/Equity ratio 0.48 0.48
Cost of debt 8.70% 22.70%
After-tax WACC 8.2% 14.0%
Selected WACC 11.1%

RCC.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 RCC.VN:

cost_of_equity (10.40%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.63) + 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.