The WACC of TNS Holdings JSC (TN1.VN) is 11.6%.
Range | Selected | |
Cost of equity | 12.8% - 20.2% | 16.5% |
Tax rate | 25.8% - 27.4% | 26.6% |
Cost of debt | 5.9% - 17.0% | 11.45% |
WACC | 7.7% - 15.5% | 11.6% |
Category | Low | High |
Long-term bond rate | 2.7% | 3.2% |
Equity market risk premium | 9.5% | 10.5% |
Adjusted beta | 1.06 | 1.57 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.8% | 20.2% |
Tax rate | 25.8% | 27.4% |
Debt/Equity ratio | 1.55 | 1.55 |
Cost of debt | 5.9% | 17.0% |
After-tax WACC | 7.7% | 15.5% |
Selected WACC | 11.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
TN1.VN | TNS Holdings JSC | 1.55 | 0.35 | 0.16 |
9916.HK | Xingye Wulian Service Group Co Ltd | 0.01 | 0.5 | 0.5 |
DRSL.TA | Dorsel BAZ Ltd | 1.36 | 1.04 | 0.52 |
FDC.VN | Foreign Trade Development and Investment Corp of Ho Chi Minh City | 0.17 | -0.25 | -0.22 |
HAR.VN | An Duong Thao Dien Real estate Trading Investment JSC | 0 | 0.94 | 0.94 |
HDC.VN | Ba Ria Vung Tau House Development JSC | 0.39 | 1.15 | 0.89 |
KBC.VN | Kinhbac City Development Holding Corp | 0.5 | 1.47 | 1.08 |
LHG.VN | Long Hau Corp | 0.12 | 1.24 | 1.14 |
SJC.VN | Song Da 1.01 JSC | 5.46 | 0.52 | 0.11 |
VRE.VN | Vincom Retail JSC | 0.08 | 0.9 | 0.85 |
Low | High | |
Unlevered beta | 0.51 | 0.87 |
Relevered beta | 1.09 | 1.85 |
Adjusted relevered beta | 1.06 | 1.57 |
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.