VC7.VN WACC - Weighted Average Cost of Capital
The WACC of BGI Group JSC (VC7.VN) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.4% | 7.35% |
| Tax rate | 15.8% - 22.9% | 19.35% |
| Cost of debt | 6.4% - 7.9% | 7.15% |
| WACC | 6.2% - 8.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.37 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.4% |
| Tax rate | 15.8% | 22.9% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 6.4% | 7.9% |
| After-tax WACC | 6.2% | 8.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VC7.VN | BGI Group JSC | 0.14 | 1.56 | 1.4 |
| DIH.VN | Development Investment Construction Hoi An JSC | 3.92 | 0.14 | 0.03 |
| HU3.VN | HUD3 Investment and Construction JSC | 0.43 | 0 | 0 |
| ICG.VN | Song Hong Construction JSC | 0.12 | 0.13 | 0.11 |
| KTT.VN | KTT Investment Group JSC | 44.16 | 0.48 | 0.01 |
| LGL.VN | Long Giang Investment and Urban Development JSC | 2.03 | 0.83 | 0.31 |
| LM7.VN | Lilama 7 JSC | 6.63 | -1.5 | -0.23 |
| QTC.VN | Quang Nam Construction Transportation JSC | 0.08 | 0.08 | 0.07 |
| SDD.VN | Song Da Investment and Construction JSC | 4.59 | 1.43 | 0.3 |
| V21.VN | Vinaconex 21 JSC | 0.8 | 0.35 | 0.21 |
| Low | High | |
| Unlevered beta | 0.06 | 0.15 |
| Relevered beta | 0.06 | 0.16 |
| Adjusted relevered beta | 0.37 | 0.44 |
VC7.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 VC7.VN:
cost_of_equity (7.35%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.37) + 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.