SMC.VN
SMC Trading Investment JSC
Price:  
11.2 
VND
Volume:  
386,500
Viet Nam | Metals & Mining

SMC.VN WACC - Weighted Average Cost of Capital

The WACC of SMC Trading Investment JSC (SMC.VN) is 6.7%.

The Cost of Equity of SMC Trading Investment JSC (SMC.VN) is 9.15%.
The Cost of Debt of SMC Trading Investment JSC (SMC.VN) is 6.85%.

RangeSelected
Cost of equity8.0% - 10.3%9.15%
Tax rate12.4% - 15.5%13.95%
Cost of debt6.7% - 7.0%6.85%
WACC6.4% - 7.0%6.7%
WACC

SMC.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.550.62
Additional risk adjustments0.0%0.5%
Cost of equity8.0%10.3%
Tax rate12.4%15.5%
Debt/Equity ratio
2.932.93
Cost of debt6.7%7.0%
After-tax WACC6.4%7.0%
Selected WACC6.7%

SMC.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 SMC.VN:

cost_of_equity (9.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.55) + 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.