VTR.VN
Vietnam Travel and Marketing Transports Vietravel JSC
Price:  
16,700.00 
VND
Volume:  
14,200.00
Viet Nam | N/A
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VTR.VN WACC - Weighted Average Cost of Capital

The WACC of Vietnam Travel and Marketing Transports Vietravel JSC (VTR.VN) is 9.7%.

The Cost of Equity of Vietnam Travel and Marketing Transports Vietravel JSC (VTR.VN) is 14.50%.
The Cost of Debt of Vietnam Travel and Marketing Transports Vietravel JSC (VTR.VN) is 7.50%.

Range Selected
Cost of equity 11.90% - 17.10% 14.50%
Tax rate 0.80% - 8.70% 4.75%
Cost of debt 7.00% - 8.00% 7.50%
WACC 8.6% - 10.7% 9.7%
WACC

VTR.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.96 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.90% 17.10%
Tax rate 0.80% 8.70%
Debt/Equity ratio 1.9 1.9
Cost of debt 7.00% 8.00%
After-tax WACC 8.6% 10.7%
Selected WACC 9.7%

VTR.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 VTR.VN:

cost_of_equity (14.50%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.96) + 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.