Skip to content

VinFast Auto Ltd. Ordinary Shares (VFS) — WACC Analysis

WACC Breakdown

VinFast Auto Ltd. Ordinary Shares (VFS) has a weighted average cost of capital (WACC) of 13.8%. The cost of equity is 8.6%, derived from a beta of 0.80 and a risk-free rate of 5.0%. The after-tax cost of debt is 33.3%. The capital structure is 79.1% equity and 20.9% debt.

Interpretation

A WACC of 13.8% indicates that the market perceives VinFast Auto Ltd. Ordinary Shares as higher-risk, requiring a greater return to compensate investors.

Investors can compare VFS's WACC of 13.8% against industry peers to gauge its relative financing costs. A beta of 0.80 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

VFS WACC: 13.78% for VinFast Auto Ltd. Ordinary Shares

Current inputs imply a 8.64% cost of equity and a 33.27% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

VinFast Auto Ltd. Ordinary Shares Common Stock (VFS) WACC Results
Weighted Average Cost of Capital
13.78%
Cost of Equity
8.64%
Risk-Free Rate4.97%
Beta0.80
Market Risk Premium4.23%
Cost of Debt
33.27%
Pre-Tax Cost of Debt33.27%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 79.10%($7322.75M)
Debt: 20.90%($1934.37M)
Equity Component
6.83%
79.10% × 8.64%
Debt Component
6.95%
20.90% × 33.27%

VinFast Auto Ltd. Ordinary Shares (VFS) WACC in context

VinFast Auto Ltd. Ordinary Shares (VFS) currently screens with an estimated WACC of 13.78%. That blends a 8.64% cost of equity, a 33.27% pre-tax cost of debt, and a 79.10% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What VFS WACC implies

A 13.78% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates VFS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.80 and equity accounts for 79.10% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.