TSC.VN WACC - Weighted Average Cost of Capital
The WACC of Techno-Agricultural Supplying JSC (TSC.VN) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.3% | 8.05% |
| Tax rate | 22.3% - 29.9% | 26.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.6% - 7.8% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.43 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.3% |
| Tax rate | 22.3% | 29.9% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.6% | 7.8% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TSC.VN | Techno-Agricultural Supplying JSC | 0.49 | 0.19 | 0.14 |
| 539800.BO | CHD CHEMICALS Ltd | 1.14 | -0.04 | -0.02 |
| 8152.HK | M&L Holdings Group Ltd | 1.13 | 0.12 | 0.06 |
| 8400.HK | Asia Pioneer Entertainment Holdings Ltd | 0.09 | 1.31 | 1.23 |
| ARM.VN | General Aviation Import Export JSC | 0.37 | -1.01 | -0.79 |
| BRS.SI | USP Group Ltd | 9.97 | 1.46 | 0.17 |
| GLT.VN | Global Electrical Technology Corp | 0.55 | -0.51 | -0.36 |
| PGLOBE.KL | Paragon Globe Bhd | 0.65 | 0.63 | 0.42 |
| PIT.VN | Petrolimex International Trading JSC | 2.21 | 0.76 | 0.28 |
| TURBO.KL | Turbo-Mech Bhd | 0.05 | 0.55 | 0.53 |
| Low | High | |
| Unlevered beta | 0.11 | 0.21 |
| Relevered beta | 0.15 | 0.3 |
| Adjusted relevered beta | 0.43 | 0.53 |
TSC.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 TSC.VN:
cost_of_equity (8.05%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.43) + 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.