SDY.VN
Song Da Yaly Cement JSC
Price:  
1,000.00 
VND
Volume:  
1,100.00
Viet Nam | Construction Materials
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SDY.VN WACC - Weighted Average Cost of Capital

The WACC of Song Da Yaly Cement JSC (SDY.VN) is 6.0%.

The Cost of Equity of Song Da Yaly Cement JSC (SDY.VN) is 19.30%.
The Cost of Debt of Song Da Yaly Cement JSC (SDY.VN) is 4.25%.

Range Selected
Cost of equity 15.80% - 22.80% 19.30%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.3% - 6.8% 6.0%
WACC

SDY.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 1.37 1.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.80% 22.80%
Tax rate 22.10% 22.30%
Debt/Equity ratio 4.92 4.92
Cost of debt 4.00% 4.50%
After-tax WACC 5.3% 6.8%
Selected WACC 6.0%

SDY.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 SDY.VN:

cost_of_equity (19.30%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.37) + 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.