ROS.VN WACC - Weighted Average Cost of Capital
The WACC of FLC Faros Construction JSC (ROS.VN) is 9.1%.
| Range | Selected | |
| Cost of equity | 8.4% - 12.9% | 10.65% |
| Tax rate | 25.0% - 27.5% | 26.25% |
| Cost of debt | 8.0% - 10.2% | 9.1% |
| WACC | 7.4% - 10.7% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.59 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 12.9% |
| Tax rate | 25.0% | 27.5% |
| Debt/Equity ratio | 0.64 | 0.64 |
| Cost of debt | 8.0% | 10.2% |
| After-tax WACC | 7.4% | 10.7% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ROS.VN | FLC Faros Construction JSC | 0.64 | 1.34 | 0.91 |
| CEE.VN | CII Infrastructure Construction JSC | 2.4 | -0.03 | -0.01 |
| DPG.VN | Dat Phuong JSC | 0.81 | 1.4 | 0.87 |
| L18.VN | Construction And Investment JSC No 18 | 1.54 | 1.3 | 0.61 |
| LIG.VN | Licogi 13 JSC | 9.48 | 0.55 | 0.07 |
| LM8.VN | Lilama 18 JSC | 2.92 | 0.17 | 0.05 |
| PVX.VN | PetroVietnam Construction Joint Stock Corp | 1.33 | 1.91 | 0.96 |
| S99.VN | SCI JSC | 3.09 | 1.31 | 0.4 |
| SCI.VN | SCI E&C JSC | 2.78 | 1.54 | 0.5 |
| SD4.VN | Song Da 4 JSC | 12.75 | -1.06 | -0.1 |
| Low | High | |
| Unlevered beta | 0.26 | 0.54 |
| Relevered beta | 0.39 | 0.81 |
| Adjusted relevered beta | 0.59 | 0.87 |
ROS.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 ROS.VN:
cost_of_equity (10.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.59) + 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.