SGC.VN WACC - Weighted Average Cost of Capital
The WACC of Sa Giang Import Export Corp (SGC.VN) is 9.1%.
| Range | Selected | |
| Cost of equity | 7.7% - 10.6% | 9.15% |
| Tax rate | 16.7% - 18.1% | 17.4% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 7.7% - 10.5% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.52 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 10.6% |
| Tax rate | 16.7% | 18.1% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 7.7% | 10.5% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SGC.VN | Sa Giang Import Export Corp | 0.03 | 0.57 | 0.55 |
| ABT.VN | Bentre Aquaproduct Import and Export JSC | 0.24 | 0.85 | 0.71 |
| BCF.VN | Bich Chi Food Co | 0.09 | 0.2 | 0.19 |
| CAD.VN | Cadovimex Seafood Import Export and Processing JSC | 35.23 | 1 | 0.03 |
| HKT.VN | Ego Viet Nam Investment JSC | 0.23 | 0.41 | 0.34 |
| ICF.VN | Investment Commerce Fisheries Corp | 0.79 | 1.09 | 0.66 |
| KTS.VN | Kon Tum Sugar JSC | 0.92 | 0.74 | 0.42 |
| LAF.VN | Long An Food Processing Export JSC | 0.36 | 0.81 | 0.63 |
| TS4.VN | Seafood JSC No 4 | 6.79 | 1.09 | 0.16 |
| VHE.VN | Viet Nam Herbs and Foods JSC | 0.95 | 0.28 | 0.16 |
| Low | High | |
| Unlevered beta | 0.28 | 0.47 |
| Relevered beta | 0.28 | 0.48 |
| Adjusted relevered beta | 0.52 | 0.65 |
SGC.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 SGC.VN:
cost_of_equity (9.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.52) + 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.