SZL.VN WACC - Weighted Average Cost of Capital
The WACC of Sonadezi Long Thanh Shareholding Co (SZL.VN) is 11.1%.
| Range | Selected | |
| Cost of equity | 11.3% - 14.7% | 13% |
| Tax rate | 17.6% - 18.0% | 17.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 9.7% - 12.5% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.9 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 14.7% |
| Tax rate | 17.6% | 18.0% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 9.7% | 12.5% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SZL.VN | Sonadezi Long Thanh Shareholding Co | 0.2 | 0.73 | 0.63 |
| 593.HK | DreamEast Group Ltd | 56.64 | -0.7 | -0.01 |
| API.VN | Asia Pacific Investment JSC | 1.03 | 2.08 | 1.12 |
| BCM.VN | Investment and Industrial Development Joint Stock Corp | 0.37 | 1.03 | 0.79 |
| FLC.VN | FLC Group JSC | 1.62 | 1.79 | 0.77 |
| IDV.VN | VinhPhuc Infrastructure Development JSC | 0.07 | 1.39 | 1.31 |
| OMRE.JK | Indonesia Prima Property Tbk PT | 0.03 | -0.16 | -0.15 |
| PROZONINTU.NS | Prozone Intu Properties Ltd | 0.95 | 1.83 | 1.03 |
| SCR.VN | Sai Gon Thuong Tin Real Estate JSC | 1.45 | 1.27 | 0.58 |
| TIG.VN | Thang Long Investment Group JSC | 0.59 | 1.84 | 1.24 |
| Low | High | |
| Unlevered beta | 0.71 | 0.88 |
| Relevered beta | 0.85 | 1.06 |
| Adjusted relevered beta | 0.9 | 1.04 |
SZL.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 SZL.VN:
cost_of_equity (13.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.9) + 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.