TN1.VN
TNS Holdings JSC
Price:  
11.45 
VND
Volume:  
2,600
Viet Nam | Real Estate Management & Development

TN1.VN WACC - Weighted Average Cost of Capital

The WACC of TNS Holdings JSC (TN1.VN) is 11.6%.

The Cost of Equity of TNS Holdings JSC (TN1.VN) is 16.5%.
The Cost of Debt of TNS Holdings JSC (TN1.VN) is 11.45%.

RangeSelected
Cost of equity12.8% - 20.2%16.5%
Tax rate25.8% - 27.4%26.6%
Cost of debt5.9% - 17.0%11.45%
WACC7.7% - 15.5%11.6%
WACC

TN1.VN WACC calculation

CategoryLowHigh
Long-term bond rate2.7%3.2%
Equity market risk premium9.5%10.5%
Adjusted beta1.061.57
Additional risk adjustments0.0%0.5%
Cost of equity12.8%20.2%
Tax rate25.8%27.4%
Debt/Equity ratio
1.551.55
Cost of debt5.9%17.0%
After-tax WACC7.7%15.5%
Selected WACC11.6%

TN1.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 TN1.VN:

cost_of_equity (16.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.06) + 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.