SED.VN WACC - Weighted Average Cost of Capital
The WACC of Phuong Nam Education Investment and Development JSC (SED.VN) is 9.9%.
| Range | Selected | |
| Cost of equity | 9.5% - 13.2% | 11.35% |
| Tax rate | 24.0% - 25.0% | 24.5% |
| Cost of debt | 4.0% - 6.4% | 5.2% |
| WACC | 8.2% - 11.6% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.71 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 13.2% |
| Tax rate | 24.0% | 25.0% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 6.4% |
| After-tax WACC | 8.2% | 11.6% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SED.VN | Phuong Nam Education Investment and Development JSC | 0.24 | 0.6 | 0.51 |
| 343.HK | Culturecom Holdings Ltd | 0.02 | 0.78 | 0.77 |
| EBS.VN | Educational Book JSC in Ha Noi City | 0.06 | -0.07 | -0.07 |
| ECI.VN | Education Cartography and Illustration JSC | 0.07 | 0.04 | 0.03 |
| EID.VN | Ha Noi Education Development And Investment JSC | 0.05 | 0.45 | 0.44 |
| HBE.VN | Hatinh Book And Equiptment Education JSC | 0.05 | 0.95 | 0.92 |
| LBE.VN | Long An School Book and Equipment JSC | 0.16 | -0.12 | -0.11 |
| NMG.BK | Nation Multimedia Group PCL | 0.7 | 1.07 | 0.7 |
| SASBADI.KL | Sasbadi Holdings Bhd | 0.14 | 0.91 | 0.82 |
| TMPO.JK | Tempo Inti Media Tbk PT | 0.48 | 1.83 | 1.34 |
| Low | High | |
| Unlevered beta | 0.48 | 0.73 |
| Relevered beta | 0.57 | 0.85 |
| Adjusted relevered beta | 0.71 | 0.9 |
SED.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 SED.VN:
cost_of_equity (11.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.71) + 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.