SVI.VN WACC - Weighted Average Cost of Capital
The WACC of Bien Hoa Packaging Co (SVI.VN) is 9.2%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.9% | 7.7% |
| Tax rate | 20.4% - 20.9% | 20.65% |
| Cost of debt | 5.9% - 34.5% | 20.2% |
| WACC | 6.2% - 12.1% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.4 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.9% |
| Tax rate | 20.4% | 20.9% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 5.9% | 34.5% |
| After-tax WACC | 6.2% | 12.1% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SVI.VN | Bien Hoa Packaging Co | 0.21 | 0.46 | 0.39 |
| BPC.VN | Vicem Packaging Bimson JSC | 0.45 | 1.15 | 0.85 |
| HPB.VN | PP Pack Making JSC | 0.03 | -0.22 | -0.21 |
| PBP.VN | Petrovietnam Packaging JSC | 0.2 | 0.53 | 0.45 |
| PMP.VN | Dam Phu My Packaging JSC | 1.95 | 0.39 | 0.15 |
| SDG.VN | Sadico CanTho Joint Stock Corp | 1.48 | -0.05 | -0.02 |
| STP.VN | Song Da Industry Trade JSC | 0.14 | 0.33 | 0.3 |
| TDP.VN | Thuan Duc JSC | 0.85 | 0.1 | 0.06 |
| TPC.VN | Tan Dai Hung Plastic JSC | 0.55 | 0.14 | 0.09 |
| VBC.VN | Vinh Plastic and Bags JSC | 0.69 | 0.12 | 0.08 |
| Low | High | |
| Unlevered beta | 0.09 | 0.21 |
| Relevered beta | 0.1 | 0.24 |
| Adjusted relevered beta | 0.4 | 0.49 |
SVI.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 SVI.VN:
cost_of_equity (7.70%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.4) + 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.