VJC.VN
Vietjet Aviation JSC
Price:  
87.80 
VND
Volume:  
571,400.00
Viet Nam | Airlines
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VJC.VN WACC - Weighted Average Cost of Capital

The WACC of Vietjet Aviation JSC (VJC.VN) is 9.5%.

The Cost of Equity of Vietjet Aviation JSC (VJC.VN) is 11.00%.
The Cost of Debt of Vietjet Aviation JSC (VJC.VN) is 10.10%.

Range Selected
Cost of equity 8.00% - 14.00% 11.00%
Tax rate 22.10% - 22.30% 22.20%
Cost of debt 8.90% - 11.30% 10.10%
WACC 7.5% - 11.5% 9.5%
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 0.55 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.00% 14.00%
Tax rate 22.10% 22.30%
Debt/Equity ratio 0.89 0.89
Cost of debt 8.90% 11.30%
After-tax WACC 7.5% 11.5%
Selected WACC 9.5%

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 (11.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.55) + 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.