SJ1.VN
Hung Hau Agricultural Corp
Price:  
10,900.00 
VND
Volume:  
5,200.00
Viet Nam | Food Products
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SJ1.VN WACC - Weighted Average Cost of Capital

The WACC of Hung Hau Agricultural Corp (SJ1.VN) is 8.1%.

The Cost of Equity of Hung Hau Agricultural Corp (SJ1.VN) is 9.50%.
The Cost of Debt of Hung Hau Agricultural Corp (SJ1.VN) is 9.35%.

Range Selected
Cost of equity 6.40% - 12.60% 9.50%
Tax rate 21.00% - 21.10% 21.05%
Cost of debt 7.40% - 11.30% 9.35%
WACC 6.0% - 10.2% 8.1%
WACC

SJ1.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.39 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 12.60%
Tax rate 21.00% 21.10%
Debt/Equity ratio 1.73 1.73
Cost of debt 7.40% 11.30%
After-tax WACC 6.0% 10.2%
Selected WACC 8.1%

SJ1.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 SJ1.VN:

cost_of_equity (9.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.39) + 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.