SAP.VN
Textbook Printing JSC in Ho Chi Minh City
Price:  
22,700.00 
VND
Volume:  
100.00
Viet Nam | Commercial Services & Supplies
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SAP.VN WACC - Weighted Average Cost of Capital

The WACC of Textbook Printing JSC in Ho Chi Minh City (SAP.VN) is 5.4%.

The Cost of Equity of Textbook Printing JSC in Ho Chi Minh City (SAP.VN) is 6.40%.
The Cost of Debt of Textbook Printing JSC in Ho Chi Minh City (SAP.VN) is 5.50%.

Range Selected
Cost of equity 4.80% - 8.00% 6.40%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.0% - 6.7% 5.4%
WACC

SAP.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.16 0.36
Additional risk adjustments 0.5% 1.0%
Cost of equity 4.80% 8.00%
Tax rate 22.10% 22.30%
Debt/Equity ratio 1 1
Cost of debt 4.00% 7.00%
After-tax WACC 4.0% 6.7%
Selected WACC 5.4%

SAP.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 SAP.VN:

cost_of_equity (6.40%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.16) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.