TCL.VN WACC - Weighted Average Cost of Capital
The WACC of Tan Cang Logistics and Stevedoring JSC (TCL.VN) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.4% - 11.5% | 9.95% |
| Tax rate | 18.0% - 18.2% | 18.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.3% - 11.2% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.6 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.4% | 11.5% |
| Tax rate | 18.0% | 18.2% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.3% | 11.2% |
| Selected WACC | 9.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TCL.VN | Tan Cang Logistics and Stevedoring JSC | 0.03 | 0.45 | 0.44 |
| 498.HK | PYI Corporation Ltd | 0.29 | 1.18 | 0.96 |
| CDN.VN | Danang Port JSC | 0.14 | 0.84 | 0.75 |
| CLL.VN | Cat Lai Port JSC | 0 | 0.26 | 0.26 |
| DXP.VN | DoanXa Port JSC | 0.16 | 1.12 | 0.99 |
| GMD.VN | Gemadept Corp | 0.1 | 1.16 | 1.07 |
| HAH.VN | Hai An Transport and Stevedoring JSC | 0.24 | 0.37 | 0.31 |
| NAP.VN | Nghe Tinh Port JSC | 0.03 | -0.8 | -0.78 |
| PDN.VN | Dong Nai Port JSC | 0.11 | 0.5 | 0.46 |
| VGP.VN | Vegetexco Port JSC | 6.61 | 0.43 | 0.07 |
| Low | High | |
| Unlevered beta | 0.39 | 0.58 |
| Relevered beta | 0.4 | 0.61 |
| Adjusted relevered beta | 0.6 | 0.74 |
TCL.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 TCL.VN:
cost_of_equity (9.95%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.6) + 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.