SCJ.VN
Saison Cement JSC
Price:  
3,700.00 
VND
Volume:  
8,900.00
Viet Nam | Construction Materials
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SCJ.VN WACC - Weighted Average Cost of Capital

The WACC of Saison Cement JSC (SCJ.VN) is 7.0%.

The Cost of Equity of Saison Cement JSC (SCJ.VN) is 19.05%.
The Cost of Debt of Saison Cement JSC (SCJ.VN) is 5.70%.

Range Selected
Cost of equity 15.00% - 23.10% 19.05%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 7.40% 5.70%
WACC 5.2% - 8.8% 7.0%
WACC

SCJ.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 1.29 1.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 23.10%
Tax rate 22.10% 22.30%
Debt/Equity ratio 4.76 4.76
Cost of debt 4.00% 7.40%
After-tax WACC 5.2% 8.8%
Selected WACC 7.0%

SCJ.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 SCJ.VN:

cost_of_equity (19.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.29) + 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.