TL4.VN
Hydraulics Construction Corp No.4 JSC
Price:  
8,000.00 
VND
Volume:  
59,200.00
Viet Nam | N/A
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TL4.VN WACC - Weighted Average Cost of Capital

The WACC of Hydraulics Construction Corp No.4 JSC (TL4.VN) is 8.9%.

The Cost of Equity of Hydraulics Construction Corp No.4 JSC (TL4.VN) is 8.90%.
The Cost of Debt of Hydraulics Construction Corp No.4 JSC (TL4.VN) is 7.55%.

Range Selected
Cost of equity 7.60% - 10.20% 8.90%
Tax rate 22.30% - 46.10% 34.20%
Cost of debt 7.00% - 8.10% 7.55%
WACC 7.6% - 10.1% 8.9%
WACC

TL4.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.51 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.20%
Tax rate 22.30% 46.10%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 8.10%
After-tax WACC 7.6% 10.1%
Selected WACC 8.9%

TL4.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 TL4.VN:

cost_of_equity (8.90%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.51) + 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.