S4A.VN
Sesan 4A Hydroelectric JSC
Price:  
36.00 
VND
Volume:  
100.00
Viet Nam | Independent Power and Renewable Electricity Producers
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S4A.VN WACC - Weighted Average Cost of Capital

The WACC of Sesan 4A Hydroelectric JSC (S4A.VN) is 8.8%.

The Cost of Equity of Sesan 4A Hydroelectric JSC (S4A.VN) is 9.55%.
The Cost of Debt of Sesan 4A Hydroelectric JSC (S4A.VN) is 5.40%.

Range Selected
Cost of equity 8.00% - 11.10% 9.55%
Tax rate 5.50% - 6.20% 5.85%
Cost of debt 4.00% - 6.80% 5.40%
WACC 7.3% - 10.4% 8.8%
WACC

S4A.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.55 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 11.10%
Tax rate 5.50% 6.20%
Debt/Equity ratio 0.19 0.19
Cost of debt 4.00% 6.80%
After-tax WACC 7.3% 10.4%
Selected WACC 8.8%

S4A.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 S4A.VN:

cost_of_equity (9.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.55) + 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.