VEIL.L WACC - Weighted Average Cost of Capital
The WACC of Vietnam Enterprise Investments Limited (VEIL.L) is 9.0%.
| Range | Selected | |
| Cost of equity | 12.3% - 16.3% | 14.3% |
| Tax rate | 19.0% - 19.0% | 19% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 8.0% - 10.0% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.39 | 1.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.3% | 16.3% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 8.0% | 10.0% |
| Selected WACC | 9.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VEIL.L | Vietnam Enterprise Investments Limited | 1.06 | 0.82 | 0.44 |
| AGT.L | AVI Global Trust PLC | 0.16 | 1.09 | 0.96 |
| BBGI.L | BBGI SICAV SA | 0 | 0.2 | 0.2 |
| BGFD.L | Baillie Gifford Japan Trust PLC | 0.23 | 0.91 | 0.77 |
| BRSC.L | Blackrock Smaller Companies Trust PLC | 0.14 | 1.37 | 1.23 |
| GCP.L | GCP Infrastructure Investments Ltd | 0.1 | 0.41 | 0.38 |
| HSL.L | Henderson Smaller Companies Investment Trust PLC | 0.18 | 1.58 | 1.38 |
| HVPE.L | HarbourVest Global Private Equity Ltd | 0.2 | 0.85 | 0.73 |
| MUT.L | Murray Income Trust PLC | 0.14 | 1.04 | 0.94 |
| THRG.L | BlackRock Throgmorton Trust plc | 0 | 1.41 | 1.4 |
| TRG.L | TR European Growth Trust PLC | 0.12 | 1.58 | 1.43 |
| Low | High | |
| Unlevered beta | 0.77 | 0.96 |
| Relevered beta | 1.58 | 1.93 |
| Adjusted relevered beta | 1.39 | 1.62 |
VEIL.L'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 VEIL.L:
cost_of_equity (14.30%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.39) + 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.