VNP.VN WACC - Weighted Average Cost of Capital
The WACC of Vietnam Plastic Corp (VNP.VN) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.4% | 8.75% |
| Tax rate | 0.9% - 1.3% | 1.1% |
| Cost of debt | 7.0% - 10.0% | 8.5% |
| WACC | 7.0% - 10.3% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.45 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.4% |
| Tax rate | 0.9% | 1.3% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 7.0% | 10.0% |
| After-tax WACC | 7.0% | 10.3% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VNP.VN | Vietnam Plastic Corp | 0.32 | 1.61 | 1.23 |
| HAF.VN | Hanoi Foodstuff JSC | 0.24 | -0.39 | -0.31 |
| ITS.VN | Vinacomin Investment, Trading And Service JSC | 6.9 | 0.63 | 0.08 |
| MEL.VN | Me Lin Steel JSC | 4.25 | 0.94 | 0.18 |
| PVM.VN | Petrovietnam Machinery Technology JSC | 0.26 | 0.95 | 0.75 |
| SWC.VN | Southern Waterborne Transport Corp | 0.05 | 0.53 | 0.51 |
| TDG.VN | Thai Duong Petrol JSC | 4.34 | 1.29 | 0.24 |
| Low | High | |
| Unlevered beta | 0.21 | 0.4 |
| Relevered beta | 0.18 | 0.46 |
| Adjusted relevered beta | 0.45 | 0.64 |
VNP.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 VNP.VN:
cost_of_equity (8.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.45) + 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.