The WACC of Sunstar Investment JSC (SJF.VN) is 7.5%.
Range | Selected | |
Cost of equity | 9.7% - 13.3% | 11.5% |
Tax rate | 17.1% - 26.3% | 21.7% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.8% - 8.3% | 7.5% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 0.73 | 0.91 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.7% | 13.3% |
Tax rate | 17.1% | 26.3% |
Debt/Equity ratio | 1.09 | 1.09 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.8% | 8.3% |
Selected WACC | 7.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SJF.VN | Sunstar Investment JSC | 1.09 | 1.86 | 0.99 |
AHF.AX | Australian Dairy Nutritionals Group | 0.07 | -0.05 | -0.05 |
BSHSL.NS | Bombay Super Hybrid Seeds Ltd | 0.03 | 1.49 | 1.45 |
GREENYB.KL | Greenyield Bhd | 0.07 | 1.07 | 1.02 |
GTN.VN | GTNFoods JSC | 0.02 | 0.58 | 0.58 |
HAG.VN | Hoang Anh Gia Lai JSC | 0.5 | 0.51 | 0.36 |
HKB.VN | Hanoi Kinhbac Agriculture and Food JSC | 0.33 | 0.93 | 0.73 |
HNG.VN | Hoang Anh Gia Lai Agricultural JSC | 1.92 | 0.99 | 0.39 |
NSC.VN | Vietnam National Seed Group JSC | 0.13 | 0.18 | 0.16 |
SSC.VN | Southern Seed Corp | 0.05 | 0.11 | 0.1 |
Low | High | |
Unlevered beta | 0.38 | 0.64 |
Relevered beta | 0.6 | 0.87 |
Adjusted relevered beta | 0.73 | 0.91 |
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.