SEB.VN
Mien Trung Power Investment and Development JSC
Price:  
48.50 
VND
Volume:  
101.00
Viet Nam | Independent Power and Renewable Electricity Producers
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SEB.VN WACC - Weighted Average Cost of Capital

The WACC of Mien Trung Power Investment and Development JSC (SEB.VN) is 7.7%.

The Cost of Equity of Mien Trung Power Investment and Development JSC (SEB.VN) is 7.70%.
The Cost of Debt of Mien Trung Power Investment and Development JSC (SEB.VN) is 5.50%.

Range Selected
Cost of equity 6.10% - 9.30% 7.70%
Tax rate 12.50% - 15.00% 13.75%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.1% - 9.3% 7.7%
WACC

SEB.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.35 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 9.30%
Tax rate 12.50% 15.00%
Debt/Equity ratio 0 0
Cost of debt 4.00% 7.00%
After-tax WACC 6.1% 9.3%
Selected WACC 7.7%

SEB.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 SEB.VN:

cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.35) + 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.