TDH.VN
Thu Duc Housing Development Corp
Price:  
4.59 
VND
Volume:  
524,400.00
Viet Nam | Real Estate Management & Development
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TDH.VN WACC - Weighted Average Cost of Capital

The WACC of Thu Duc Housing Development Corp (TDH.VN) is 8.6%.

The Cost of Equity of Thu Duc Housing Development Corp (TDH.VN) is 12.40%.
The Cost of Debt of Thu Duc Housing Development Corp (TDH.VN) is 5.00%.

Range Selected
Cost of equity 9.50% - 15.30% 12.40%
Tax rate 2.40% - 5.80% 4.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 10.0% 8.6%
WACC

TDH.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.71 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.50% 15.30%
Tax rate 2.40% 5.80%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 10.0%
Selected WACC 8.6%

TDH.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 TDH.VN:

cost_of_equity (12.40%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.71) + 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.