SDD.VN WACC - Weighted Average Cost of Capital
The WACC of Song Da Investment and Construction JSC (SDD.VN) is 4.0%.
| Range | Selected | |
| Cost of equity | 6.2% - 7.9% | 7.05% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.7% - 4.3% | 4.0% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.36 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 7.9% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 4.59 | 4.59 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.7% | 4.3% |
| Selected WACC | 4.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SDD.VN | Song Da Investment and Construction JSC | 4.59 | 1.43 | 0.31 |
| CX8.VN | Constrexim No 8 Investment and Construction JSC | 0.84 | -0.33 | -0.2 |
| KTT.VN | KTT Investment Group JSC | 44.16 | 0.48 | 0.01 |
| LM7.VN | Lilama 7 JSC | 5.4 | -1.5 | -0.29 |
| MCO.VN | BDC Viet Nam Construction and Investment JSC | 0.16 | 1.39 | 1.23 |
| MEC.VN | Song Da Mechanical Assembling JSC | 7.46 | 0.97 | 0.14 |
| QTC.VN | Quang Nam Construction Transportation JSC | 0.09 | 0 | 0 |
| VC5.VN | Construction No5 JSC | 77.86 | 1.26 | 0.02 |
| VE4.VN | Vneco4 Electricity Construction JSC | 0.09 | -0.56 | -0.53 |
| VE8.VN | Vneco8 Electricity Construction JSC | 16.84 | 0.36 | 0.03 |
| Low | High | |
| Unlevered beta | 0.01 | 0.02 |
| Relevered beta | 0.04 | 0.1 |
| Adjusted relevered beta | 0.36 | 0.4 |
SDD.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 SDD.VN:
cost_of_equity (7.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.36) + 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.