SED.VN
Phuong Nam Education Investment and Development JSC
Price:  
24,300 
VND
Volume:  
5,000
Viet Nam | Media

SED.VN WACC - Weighted Average Cost of Capital

The WACC of Phuong Nam Education Investment and Development JSC (SED.VN) is 9.9%.

The Cost of Equity of Phuong Nam Education Investment and Development JSC (SED.VN) is 11.35%.
The Cost of Debt of Phuong Nam Education Investment and Development JSC (SED.VN) is 5.2%.

RangeSelected
Cost of equity9.5% - 13.2%11.35%
Tax rate24.0% - 25.0%24.5%
Cost of debt4.0% - 6.4%5.2%
WACC8.2% - 11.6%9.9%
WACC

SED.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.710.9
Additional risk adjustments0.0%0.5%
Cost of equity9.5%13.2%
Tax rate24.0%25.0%
Debt/Equity ratio
0.240.24
Cost of debt4.0%6.4%
After-tax WACC8.2%11.6%
Selected WACC9.9%

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.