SZL.VN
Sonadezi Long Thanh Shareholding Co
Price:  
38.50 
VND
Volume:  
8,200.00
Viet Nam | Real Estate Management & Development
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SZL.VN WACC - Weighted Average Cost of Capital

The WACC of Sonadezi Long Thanh Shareholding Co (SZL.VN) is 10.5%.

The Cost of Equity of Sonadezi Long Thanh Shareholding Co (SZL.VN) is 12.35%.
The Cost of Debt of Sonadezi Long Thanh Shareholding Co (SZL.VN) is 4.25%.

Range Selected
Cost of equity 10.90% - 13.80% 12.35%
Tax rate 18.00% - 18.40% 18.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 9.3% - 11.7% 10.5%
WACC

SZL.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.85 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.90% 13.80%
Tax rate 18.00% 18.40%
Debt/Equity ratio 0.26 0.26
Cost of debt 4.00% 4.50%
After-tax WACC 9.3% 11.7%
Selected WACC 10.5%

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 (12.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.85) + 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.