SSC.VN WACC - Weighted Average Cost of Capital
The WACC of Southern Seed Corp (SSC.VN) is 10.2%.
| Range | Selected | |
| Cost of equity | 9.3% - 11.8% | 10.55% |
| Tax rate | 20.0% - 20.8% | 20.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.0% - 11.4% | 10.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.69 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 11.8% |
| Tax rate | 20.0% | 20.8% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.0% | 11.4% |
| Selected WACC | 10.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SSC.VN | Southern Seed Corp | 0.05 | 0.28 | 0.27 |
| 536493.BO | JK Agri Genetics Ltd | 0.17 | 0.67 | 0.6 |
| AHF.AX | Australian Dairy Nutritionals Group | 0.07 | 1 | 0.94 |
| BSHSL.NS | Bombay Super Hybrid Seeds Ltd | 0.03 | 0.99 | 0.96 |
| GTN.VN | GTNFoods JSC | 0.02 | 0.58 | 0.58 |
| HAG.VN | Hoang Anh Gia Lai JSC | 0.5 | 0.61 | 0.43 |
| HKB.VN | Hanoi Kinhbac Agriculture and Food JSC | 0.33 | 0.93 | 0.73 |
| HNG.VN | Hoang Anh Gia Lai Agricultural JSC | 1.92 | 1.66 | 0.66 |
| NSC.VN | Vietnam National Seed Group JSC | 0.15 | 0.25 | 0.22 |
| SJF.VN | Sunstar Investment JSC | 1.09 | 1.86 | 1 |
| Low | High | |
| Unlevered beta | 0.59 | 0.69 |
| Relevered beta | 0.54 | 0.64 |
| Adjusted relevered beta | 0.69 | 0.76 |
SSC.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 SSC.VN:
cost_of_equity (10.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.69) + 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.