TBD.VN
Dong Anh Electrical Equipment Corporation JSC
Price:  
120,800.00 
VND
Volume:  
500.00
Viet Nam | N/A
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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 10.40%.
The Cost of Debt of Dong Anh Electrical Equipment Corporation JSC (TBD.VN) is 6.80%.

Range Selected
Cost of equity 9.20% - 11.60% 10.40%
Tax rate 19.80% - 20.30% 20.05%
Cost of debt 6.60% - 7.00% 6.80%
WACC 8.5% - 10.5% 9.5%
WACC

TBD.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.68 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 11.60%
Tax rate 19.80% 20.30%
Debt/Equity ratio 0.22 0.22
Cost of debt 6.60% 7.00%
After-tax WACC 8.5% 10.5%
Selected WACC 9.5%

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 (10.40%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.68) + 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.