TSJ.VN WACC - Weighted Average Cost of Capital
The WACC of Ha Noi Tourist Service JSC (TSJ.VN) is 7.7%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.8% | 11.1% |
| Tax rate | 11.1% - 12.9% | 12% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.9% - 8.6% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.7 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.8% |
| Tax rate | 11.1% | 12.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.9% | 8.6% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TSJ.VN | Ha Noi Tourist Service JSC | 1.04 | 1.28 | 0.67 |
| BMJ.VN | Easterns AHP Minerals JSC | 0.32 | 0.17 | 0.13 |
| GHC.VN | Gia Lai Hydropower JSC | 0.27 | 0.36 | 0.29 |
| ILS.VN | International Investment Trade and Service Joint Stock Company | 0.12 | 0.01 | 0.01 |
| ISH.VN | Idico Srok Phu Mieng Hydropower JSC | 0.01 | 0.32 | 0.32 |
| PHS.VN | Phu Hung Securities Corp | 0.86 | 1.67 | 0.95 |
| PWS.VN | Phu Yen Water Supply and Sewerage JSC | 0.09 | -0.16 | -0.15 |
| SZE.VN | Sonadezi Environment JSC | 0.18 | 0.72 | 0.62 |
| VTR.VN | Vietnam Travel and Marketing Transports Vietravel JSC | 1.57 | 0.68 | 0.29 |
| Low | High | |
| Unlevered beta | 0.29 | 0.31 |
| Relevered beta | 0.55 | 0.79 |
| Adjusted relevered beta | 0.7 | 0.86 |
TSJ.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 TSJ.VN:
cost_of_equity (11.10%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.7) + 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.