VLB.VN WACC - Weighted Average Cost of Capital
The WACC of Bien Hoa Building Materials Production And Construction JSC (VLB.VN) is 8.5%.
| Range | Selected | |
| Cost of equity | 11.3% - 14.7% | 13% |
| Tax rate | 19.1% - 20.1% | 19.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 9.3% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.9 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 14.7% |
| Tax rate | 19.1% | 20.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 9.3% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VLB.VN | Bien Hoa Building Materials Production And Construction JSC | 1.05 | 0.73 | 0.4 |
| BDT.VN | Dongthap Building Materials & Construction JSC | 1.16 | 0.93 | 0.48 |
| BMJ.VN | Easterns AHP Minerals JSC | 0.32 | 0.17 | 0.13 |
| CKG.VN | Kien Giang Construction Investment Consultancy Group | 0.57 | 1.23 | 0.85 |
| DNW.VN | Dong Nai Water JSC | 0.21 | 0.56 | 0.48 |
| HTM.VN | Hanoi Trade Joint Stock Corp | 0.32 | 0.63 | 0.5 |
| KSV.VN | Vinacomin Minerals Holding Corp | 0.11 | -1.55 | -1.43 |
| MSR.VN | Masan High-Tech Materials Corp | 0.66 | 1.32 | 0.87 |
| MTA.VN | Hatinh Minerals and Trading Joint Stock Corp | 0.18 | 1.66 | 1.45 |
| NHH.VN | Hanoi Plastics JSC | 0.26 | 0.87 | 0.72 |
| YBM.VN | Yen Bai Industry Mineral JSC | 1.64 | -1.21 | -0.52 |
| Low | High | |
| Unlevered beta | 0.48 | 0.5 |
| Relevered beta | 0.85 | 1.06 |
| Adjusted relevered beta | 0.9 | 1.04 |
VLB.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 VLB.VN:
cost_of_equity (13.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.9) + 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.