VTS.VN WACC - Weighted Average Cost of Capital
The WACC of Viglacera Tu Son JSC (VTS.VN) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.8% | 7.55% |
| Tax rate | 22.1% - 22.3% | 22.2% |
| Cost of debt | 7.0% - 12.7% | 9.85% |
| WACC | 6.2% - 8.9% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.37 | 0.48 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.8% |
| Tax rate | 22.1% | 22.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 7.0% | 12.7% |
| After-tax WACC | 6.2% | 8.9% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VTS.VN | Viglacera Tu Son JSC | 0.09 | 0.17 | 0.16 |
| BHC.VN | Bien Hoa Concrete JSC | 4.1 | 1.27 | 0.3 |
| DCT.VN | Dong Nai Roofsheet & Construction Material JSC | 33.84 | 1.16 | 0.04 |
| FCM.VN | Fecon Mining JSC | 0.62 | -0.16 | -0.11 |
| GKM.VN | Khang Minh Group JSC | 0.52 | 0.09 | 0.06 |
| HLY.VN | Viglacera HaLong I JSC | 2.13 | 1.05 | 0.4 |
| KSD.VN | DNA Investment Joint Stock Corp | 0.01 | 0.58 | 0.58 |
| MCC.VN | High Grade Brick Tile Corp | 0.04 | -0.32 | -0.31 |
| TBX.VN | Thai Binh Cement JSC | 1.13 | -0.04 | -0.02 |
| Low | High | |
| Unlevered beta | 0.05 | 0.14 |
| Relevered beta | 0.06 | 0.22 |
| Adjusted relevered beta | 0.37 | 0.48 |
VTS.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 VTS.VN:
cost_of_equity (7.55%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.37) + 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.