SGH.VN
Saigon Hotel Corp
Price:  
27,700.00 
VND
Volume:  
1,200.00
Viet Nam | Hotels, Restaurants & Leisure
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SGH.VN WACC - Weighted Average Cost of Capital

The WACC of Saigon Hotel Corp (SGH.VN) is 8.7%.

The Cost of Equity of Saigon Hotel Corp (SGH.VN) is 13.30%.
The Cost of Debt of Saigon Hotel Corp (SGH.VN) is 5.00%.

Range Selected
Cost of equity 11.00% - 15.60% 13.30%
Tax rate 17.80% - 20.20% 19.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.6% - 9.8% 8.7%
WACC

SGH.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.87 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 15.60%
Tax rate 17.80% 20.20%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.6% 9.8%
Selected WACC 8.7%

SGH.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 SGH.VN:

cost_of_equity (13.30%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.87) + 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.