SD9.VN WACC - Weighted Average Cost of Capital
The WACC of Song Da No 9 JSC (SD9.VN) is 7.3%.
| Range | Selected | |
| Cost of equity | 10.1% - 14.2% | 12.15% |
| Tax rate | 23.8% - 26.5% | 25.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 8.8% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.77 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 14.2% |
| Tax rate | 23.8% | 26.5% |
| Debt/Equity ratio | 1.5 | 1.5 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 8.8% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SD9.VN | Song Da No 9 JSC | 1.5 | 0.4 | 0.19 |
| DC4.VN | DIC Holdings Construction JSC | 0.28 | 1.59 | 1.31 |
| HUB.VN | Thua Thien Hue Construction Joint Stock Corp | 0.15 | 0.65 | 0.58 |
| L43.VN | Lilama 45.3 JSC | 9.96 | 0.25 | 0.03 |
| MST.VN | MST Investment JSC | 0.71 | 0.69 | 0.45 |
| S55.VN | Song Da 505 JSC | 1.66 | 0.03 | 0.01 |
| SJE.VN | Song Da No 11 JSC | 2.09 | 1.26 | 0.49 |
| V12.VN | Viet Nam Construction JSC No 12 | 0.02 | 0.91 | 0.9 |
| VSI.VN | Water Supply Sewerage Construction and Investment JSC | 0.45 | 0.53 | 0.39 |
| Low | High | |
| Unlevered beta | 0.4 | 0.48 |
| Relevered beta | 0.66 | 0.99 |
| Adjusted relevered beta | 0.77 | 0.99 |
SD9.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 SD9.VN:
cost_of_equity (12.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.77) + 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.