SJD.VN WACC - Weighted Average Cost of Capital
The WACC of Can Don Hydro Power JSC (SJD.VN) is 8.7%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.1% | 9.65% |
| Tax rate | 20.3% - 20.5% | 20.4% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.3% - 10.1% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.57 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.1% |
| Tax rate | 20.3% | 20.5% |
| Debt/Equity ratio | 0.22 | 0.22 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.3% | 10.1% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SJD.VN | Can Don Hydro Power JSC | 0.22 | 0.35 | 0.3 |
| 3777.T | FHT Holdings Corp | 0 | 0.7 | 0.7 |
| 534618.BO | Sangam Renewables Ltd | 0 | 0.72 | 0.71 |
| 541445.BO | WAA Solar Ltd | 0.46 | 1.12 | 0.82 |
| DDG.VN | Indochine Import Export Investment Industrial JSC | 3.41 | 1.14 | 0.31 |
| KARMAENG.NS | Karma Energy Ltd | 0.02 | 1.06 | 1.05 |
| S4A.VN | Sesan 4A Hydroelectric JSC | 0.19 | -0.46 | -0.4 |
| SBA.VN | Song Ba JSC | 0.04 | -0.17 | -0.16 |
| SEB.VN | Mien Trung Power Investment and Development JSC | 0 | 0.31 | 0.31 |
| VPD.VN | Viet Nam Power Development JSC | 0.06 | 0.04 | 0.03 |
| Low | High | |
| Unlevered beta | 0.3 | 0.47 |
| Relevered beta | 0.36 | 0.55 |
| Adjusted relevered beta | 0.57 | 0.7 |
SJD.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 SJD.VN:
cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.57) + 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.