SHS.VN WACC - Weighted Average Cost of Capital
The WACC of Saigon Hanoi Securities JSC (SHS.VN) is 13.6%.
| Range | Selected | |
| Cost of equity | 13.3% - 17.2% | 15.25% |
| Tax rate | 18.2% - 18.8% | 18.5% |
| Cost of debt | 4.0% - 6.1% | 5.05% |
| WACC | 11.8% - 15.4% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 1.11 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.3% | 17.2% |
| Tax rate | 18.2% | 18.8% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.0% | 6.1% |
| After-tax WACC | 11.8% | 15.4% |
| Selected WACC | 13.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SHS.VN | Saigon Hanoi Securities JSC | 0.18 | 1.45 | 1.27 |
| AGR.VN | Agribank Securities Joint-Stock Corp | 0.27 | 1.5 | 1.22 |
| APS.VN | Asia Pacific Securities JSC | 0.01 | 1.56 | 1.55 |
| EVS.VN | Everest Securities JSC | 0.46 | 1.48 | 1.08 |
| FIT.VN | F.I.T Group JSC | 0.93 | 0.62 | 0.35 |
| FTS.VN | FPT Securities JSC | 0.23 | 1.48 | 1.25 |
| MBS.VN | MB Securities JSC | 0.9 | 1.59 | 0.92 |
| VCI.VN | Viet Capital Securities JSC | 0.48 | 0.83 | 0.59 |
| VIX.VN | VIX Securities JSC | 0.14 | 1.52 | 1.36 |
| VND.VN | VNDIRECT Securities Corp | 0.96 | 1.19 | 0.67 |
| Low | High | |
| Unlevered beta | 1.01 | 1.23 |
| Relevered beta | 1.16 | 1.42 |
| Adjusted relevered beta | 1.11 | 1.28 |
SHS.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 SHS.VN:
cost_of_equity (15.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.11) + 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.