The WACC of Vinaship JSC (VNA.VN) is 9.7%.
| Range | Selected | |
| Cost of equity | 8.00% - 11.30% | 9.65% |
| Tax rate | 3.00% - 3.50% | 3.25% |
| Cost of debt | 4.00% - 7.00% | 5.50% |
| WACC | 8.0% - 11.3% | 9.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.56 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.00% | 11.30% |
| Tax rate | 3.00% | 3.50% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.00% | 7.00% |
| After-tax WACC | 8.0% | 11.3% |
| Selected WACC | 9.7% | |
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 VNA.VN:
cost_of_equity (9.65%) = 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.