VJC.VN
Vietjet Aviation JSC
Price:  
86.00 
VND
Volume:  
663,900.00
Viet Nam | Airlines
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VJC.VN WACC - Weighted Average Cost of Capital

The WACC of Vietjet Aviation JSC (VJC.VN) is 9.4%.

The Cost of Equity of Vietjet Aviation JSC (VJC.VN) is 11.20%.
The Cost of Debt of Vietjet Aviation JSC (VJC.VN) is 9.75%.

Range Selected
Cost of equity 8.00% - 14.40% 11.20%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 8.20% - 11.30% 9.75%
WACC 7.2% - 11.6% 9.4%
WACC

VJC.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.56 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 14.40%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.99 0.99
Cost of debt 8.20% 11.30%
After-tax WACC 7.2% 11.6%
Selected WACC 9.4%

VJC.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 VJC.VN:

cost_of_equity (11.20%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.56) + 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.