WCS.VN
West Coach Station JSC
Price:  
381.60 
VND
Volume:  
400.00
Viet Nam | Road & Rail
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WCS.VN WACC - Weighted Average Cost of Capital

The WACC of West Coach Station JSC (WCS.VN) is 6.9%.

The Cost of Equity of West Coach Station JSC (WCS.VN) is 9.65%.
The Cost of Debt of West Coach Station JSC (WCS.VN) is 5.00%.

Range Selected
Cost of equity 7.20% - 12.10% 9.65%
Tax rate 18.00% - 20.30% 19.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.7% - 8.0% 6.9%
WACC

WCS.VN WACC calculation

Category Low High
Long-term bond rate 2.7% 3.2%
Equity market risk premium 9.5% 10.5%
Adjusted beta 0.47 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 12.10%
Tax rate 18.00% 20.30%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.7% 8.0%
Selected WACC 6.9%

WCS.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 WCS.VN:

cost_of_equity (9.65%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.47) + 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.