SHB.VN
Sai Gon Ha Noi Commercial Joint Stock Bank
Price:  
17,650.00 
VND
Volume:  
103,800,500.00
Viet Nam | Banks
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SHB.VN WACC - Weighted Average Cost of Capital

The WACC of Sai Gon Ha Noi Commercial Joint Stock Bank (SHB.VN) is 10.7%.

The Cost of Equity of Sai Gon Ha Noi Commercial Joint Stock Bank (SHB.VN) is 12.40%.
The Cost of Debt of Sai Gon Ha Noi Commercial Joint Stock Bank (SHB.VN) is 5.00%.

Range Selected
Cost of equity 11.00% - 13.80% 12.40%
Tax rate 20.10% - 20.20% 20.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.6% - 11.8% 10.7%
WACC

SHB.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 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 13.80%
Tax rate 20.10% 20.20%
Debt/Equity ratio 0.26 0.26
Cost of debt 5.00% 5.00%
After-tax WACC 9.6% 11.8%
Selected WACC 10.7%

SHB.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 SHB.VN:

cost_of_equity (12.40%) = 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.