SCD.VN
Chuong Duong Beverages JSC
Price:  
12,900.00 
VND
Volume:  
100.00
Viet Nam | Beverages
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SCD.VN WACC - Weighted Average Cost of Capital

The WACC of Chuong Duong Beverages JSC (SCD.VN) is 6.8%.

The Cost of Equity of Chuong Duong Beverages JSC (SCD.VN) is 13.90%.
The Cost of Debt of Chuong Duong Beverages JSC (SCD.VN) is 5.70%.

Range Selected
Cost of equity 11.60% - 16.20% 13.90%
Tax rate 1.80% - 2.30% 2.05%
Cost of debt 4.40% - 7.00% 5.70%
WACC 5.4% - 8.2% 6.8%
WACC

SCD.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.93 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.60% 16.20%
Tax rate 1.80% 2.30%
Debt/Equity ratio 5.77 5.77
Cost of debt 4.40% 7.00%
After-tax WACC 5.4% 8.2%
Selected WACC 6.8%

SCD.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 SCD.VN:

cost_of_equity (13.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.93) + 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.