VSG.VN WACC - Weighted Average Cost of Capital
The WACC of South Vietnam Container Shipping JSC (VSG.VN) is 6.4%.
| Range | Selected | |
| Cost of equity | 13.4% - 19.8% | 16.6% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 6.2% - 6.7% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 1.12 | 1.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.4% | 19.8% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 10.29 | 10.29 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 6.2% | 6.7% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VSG.VN | South Vietnam Container Shipping JSC | 10.29 | 0.82 | 0.09 |
| CCR.VN | CamRanh Port JSC | 0.03 | -0.09 | -0.09 |
| DNL.VN | Da Nang Port Logistics JSC | 0.09 | 0.16 | 0.15 |
| NOS.VN | Oriental Shipping and Trading JSC | 226.29 | 1.12 | 0.01 |
| PSP.VN | Dinh Vu Petroleum Services Port JSC | 0.07 | 0.79 | 0.75 |
| SGS.VN | Saigon Shipping JSC | 0 | 0.83 | 0.83 |
| VTX.VN | Vietranstimex Multimodal Transport Holding Co | 0.55 | -1.95 | -1.37 |
| Low | High | |
| Unlevered beta | 0.04 | 0.13 |
| Relevered beta | 1.18 | 1.79 |
| Adjusted relevered beta | 1.12 | 1.53 |
VSG.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 VSG.VN:
cost_of_equity (16.60%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (1.12) + 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.