TVD.VN
Vinacomin Vang Danh Coal JSC
Price:  
11.20 
VND
Volume:  
10,100.00
Viet Nam | Oil, Gas & Consumable Fuels
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TVD.VN WACC - Weighted Average Cost of Capital

The WACC of Vinacomin Vang Danh Coal JSC (TVD.VN) is 8.5%.

The Cost of Equity of Vinacomin Vang Danh Coal JSC (TVD.VN) is 15.25%.
The Cost of Debt of Vinacomin Vang Danh Coal JSC (TVD.VN) is 5.65%.

Range Selected
Cost of equity 10.80% - 19.70% 15.25%
Tax rate 20.30% - 20.70% 20.50%
Cost of debt 4.50% - 6.80% 5.65%
WACC 6.3% - 10.8% 8.5%
WACC

TVD.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.85 1.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.80% 19.70%
Tax rate 20.30% 20.70%
Debt/Equity ratio 1.66 1.66
Cost of debt 4.50% 6.80%
After-tax WACC 6.3% 10.8%
Selected WACC 8.5%

TVD.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 TVD.VN:

cost_of_equity (15.25%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.85) + 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.