TDG.VN
Thai Duong Petrol JSC
Price:  
3.32 
VND
Volume:  
23,700.00
Viet Nam | N/A
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TDG.VN WACC - Weighted Average Cost of Capital

The WACC of Thai Duong Petrol JSC (TDG.VN) is 11.6%.

The Cost of Equity of Thai Duong Petrol JSC (TDG.VN) is 13.15%.
The Cost of Debt of Thai Duong Petrol JSC (TDG.VN) is 14.50%.

Range Selected
Cost of equity 10.20% - 16.10% 13.15%
Tax rate 21.00% - 23.40% 22.20%
Cost of debt 9.30% - 19.70% 14.50%
WACC 7.9% - 15.3% 11.6%
WACC

TDG.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.78 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 16.10%
Tax rate 21.00% 23.40%
Debt/Equity ratio 4.23 4.23
Cost of debt 9.30% 19.70%
After-tax WACC 7.9% 15.3%
Selected WACC 11.6%

TDG.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 TDG.VN:

cost_of_equity (13.15%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.78) + 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.