TV4.VN
Power Engineering Consulting JSC 4
Price:  
15,300.00 
VND
Volume:  
200.00
Viet Nam | Construction & Engineering
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TV4.VN WACC - Weighted Average Cost of Capital

The WACC of Power Engineering Consulting JSC 4 (TV4.VN) is 6.4%.

The Cost of Equity of Power Engineering Consulting JSC 4 (TV4.VN) is 8.45%.
The Cost of Debt of Power Engineering Consulting JSC 4 (TV4.VN) is 5.00%.

Range Selected
Cost of equity 6.40% - 10.50% 8.45%
Tax rate 11.60% - 13.70% 12.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.4% - 7.4% 6.4%
WACC

TV4.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.39 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 10.50%
Tax rate 11.60% 13.70%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.4% 7.4%
Selected WACC 6.4%

TV4.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 TV4.VN:

cost_of_equity (8.45%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.39) + 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.