VBC.VN
Vinh Plastic and Bags JSC
Price:  
20,300.00 
VND
Volume:  
200.00
Viet Nam | Containers & Packaging
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VBC.VN WACC - Weighted Average Cost of Capital

The WACC of Vinh Plastic and Bags JSC (VBC.VN) is 9.2%.

The Cost of Equity of Vinh Plastic and Bags JSC (VBC.VN) is 12.65%.
The Cost of Debt of Vinh Plastic and Bags JSC (VBC.VN) is 5.50%.

Range Selected
Cost of equity 9.30% - 16.00% 12.65%
Tax rate 20.70% - 20.90% 20.80%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.8% - 11.7% 9.2%
WACC

VBC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.69 1.16
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 16.00%
Tax rate 20.70% 20.90%
Debt/Equity ratio 0.69 0.69
Cost of debt 4.00% 7.00%
After-tax WACC 6.8% 11.7%
Selected WACC 9.2%

VBC.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 VBC.VN:

cost_of_equity (12.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.69) + 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.