VE4.VN
Vneco4 Electricity Construction JSC
Price:  
259.40 
VND
Volume:  
100.00
Viet Nam | Construction & Engineering
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VE4.VN WACC - Weighted Average Cost of Capital

The WACC of Vneco4 Electricity Construction JSC (VE4.VN) is 7.4%.

The Cost of Equity of Vneco4 Electricity Construction JSC (VE4.VN) is 7.60%.
The Cost of Debt of Vneco4 Electricity Construction JSC (VE4.VN) is 5.50%.

Range Selected
Cost of equity 6.20% - 9.00% 7.60%
Tax rate 5.20% - 12.20% 8.70%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.0% - 8.8% 7.4%
WACC

VE4.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.36 0.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.00%
Tax rate 5.20% 12.20%
Debt/Equity ratio 0.09 0.09
Cost of debt 4.00% 7.00%
After-tax WACC 6.0% 8.8%
Selected WACC 7.4%

VE4.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 VE4.VN:

cost_of_equity (7.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.36) + 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.