TBD.VN
Dong Anh Electrical Equipment Corporation JSC
Price:  
104,900 
VND
Volume:  
400
Viet Nam | Manufacturing

TBD.VN WACC - Weighted Average Cost of Capital

The WACC of Dong Anh Electrical Equipment Corporation JSC (TBD.VN) is 9.5%.

The Cost of Equity of Dong Anh Electrical Equipment Corporation JSC (TBD.VN) is 10.35%.
The Cost of Debt of Dong Anh Electrical Equipment Corporation JSC (TBD.VN) is 6.8%.

RangeSelected
Cost of equity9.1% - 11.6%10.35%
Tax rate19.8% - 20.3%20.05%
Cost of debt6.6% - 7.0%6.8%
WACC8.4% - 10.5%9.5%
WACC

TBD.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta0.670.75
Additional risk adjustments0.0%0.5%
Cost of equity9.1%11.6%
Tax rate19.8%20.3%
Debt/Equity ratio
0.220.22
Cost of debt6.6%7.0%
After-tax WACC8.4%10.5%
Selected WACC9.5%

TBD.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 TBD.VN:

cost_of_equity (10.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.67) + 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.