VPS.VN
Vietnam Pesticide JSC
Price:  
8.98 
VND
Volume:  
1,289.00
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VPS.VN WACC - Weighted Average Cost of Capital

The WACC of Vietnam Pesticide JSC (VPS.VN) is 11.3%.

The Cost of Equity of Vietnam Pesticide JSC (VPS.VN) is 12.75%.
The Cost of Debt of Vietnam Pesticide JSC (VPS.VN) is 4.55%.

Range Selected
Cost of equity 11.00% - 14.50% 12.75%
Tax rate 24.40% - 26.70% 25.55%
Cost of debt 4.00% - 5.10% 4.55%
WACC 9.8% - 12.9% 11.3%
WACC

VPS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.87 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.50%
Tax rate 24.40% 26.70%
Debt/Equity ratio 0.18 0.18
Cost of debt 4.00% 5.10%
After-tax WACC 9.8% 12.9%
Selected WACC 11.3%

VPS.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 VPS.VN:

cost_of_equity (12.75%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.87) + 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.