SCI.VN WACC - Weighted Average Cost of Capital
The WACC of SCI E&C JSC (SCI.VN) is 12.4%.
| Range | Selected | |
| Cost of equity | 11.0% - 14.4% | 12.7% |
| Tax rate | 19.9% - 20.2% | 20.05% |
| Cost of debt | 8.1% - 22.7% | 15.4% |
| WACC | 7.8% - 17.1% | 12.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.87 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 14.4% |
| Tax rate | 19.9% | 20.2% |
| Debt/Equity ratio | 2.65 | 2.65 |
| Cost of debt | 8.1% | 22.7% |
| After-tax WACC | 7.8% | 17.1% |
| Selected WACC | 12.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SCI.VN | SCI E&C JSC | 2.65 | 1.43 | 0.46 |
| AME.VN | Alphanam E&c JSC | 3.86 | 1.26 | 0.31 |
| C47.VN | Construction JSC 47 | 2.78 | 0.77 | 0.24 |
| L10.VN | Lilama 10 JSC | 0.79 | 0.02 | 0.01 |
| LM8.VN | Lilama 18 JSC | 2.84 | 0.15 | 0.05 |
| PHC.VN | Phuc Hung Holdings Construction JSC | 5.51 | 0.65 | 0.12 |
| PVX.VN | PetroVietnam Construction Joint Stock Corp | 1.25 | 1.91 | 0.96 |
| S99.VN | SCI JSC | 2.96 | 1.21 | 0.36 |
| VC2.VN | Vina2 Investment and Construction JSC | 1.51 | 0.92 | 0.42 |
| VNE.VN | Vietnam Electricity Construction Joint Stock Corp | 4.17 | 1.18 | 0.27 |
| Low | High | |
| Unlevered beta | 0.26 | 0.33 |
| Relevered beta | 0.81 | 1.03 |
| Adjusted relevered beta | 0.87 | 1.02 |
SCI.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 SCI.VN:
cost_of_equity (12.70%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.87) + 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.