AKKO.BD WACC - Weighted Average Cost of Capital

The WACC of AKKO Invest Nyrt (AKKO.BD) is 11.6%.

The Cost of Equity of AKKO Invest Nyrt (AKKO.BD) is 11.80%.

The Cost of Debt of AKKO Invest Nyrt (AKKO.BD) is 7.50%.

	Range	Selected
Cost of equity	10.40% - 13.20%	11.80%
Tax rate	6.70% - 16.10%	11.40%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.3% - 12.9%	11.6%

WACC

AKKO.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.51	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.20%

Tax rate	6.70%	16.10%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	7.50%

After-tax WACC	10.3%	12.9%


Selected WACC	11.6%

AKKO.BD'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 AKKO.BD:

cost_of_equity (11.80%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.51) + 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.