AKKO.BD WACC - Weighted Average Cost of Capital

The WACC of AKKO Invest Nyrt (AKKO.BD) is 13.2%.

The Cost of Equity of AKKO Invest Nyrt (AKKO.BD) is 13.50%.

The Cost of Debt of AKKO Invest Nyrt (AKKO.BD) is 7.60%.

	Range	Selected
Cost of equity	12.00% - 15.00%	13.50%
Tax rate	17.10% - 26.00%	21.55%
Cost of debt	7.60% - 7.60%	7.60%
WACC	11.7% - 14.6%	13.2%

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	0.7	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	15.00%

Tax rate	17.10%	26.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.60%	7.60%

After-tax WACC	11.7%	14.6%


Selected WACC	13.2%

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 (13.50%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.7) + 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.