SJF.VN
Sunstar Investment JSC
Price:  
1.7 
VND
Volume:  
1,796,100
Viet Nam | Food Products

SJF.VN WACC - Weighted Average Cost of Capital

The WACC of Sunstar Investment JSC (SJF.VN) is 7.5%.

The Cost of Equity of Sunstar Investment JSC (SJF.VN) is 11.5%.
The Cost of Debt of Sunstar Investment JSC (SJF.VN) is 5%.

RangeSelected
Cost of equity9.7% - 13.3%11.5%
Tax rate17.1% - 26.3%21.7%
Cost of debt5.0% - 5.0%5%
WACC6.8% - 8.3%7.5%
WACC

SJF.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.730.91
Additional risk adjustments0.0%0.5%
Cost of equity9.7%13.3%
Tax rate17.1%26.3%
Debt/Equity ratio
1.091.09
Cost of debt5.0%5.0%
After-tax WACC6.8%8.3%
Selected WACC7.5%

SJF.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 SJF.VN:

cost_of_equity (11.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.73) + 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.