APPENINN.BD WACC - Weighted Average Cost of Capital

The WACC of Appeninn Vagyonkezelo Holding Nyrt (APPENINN.BD) is 8.7%.

The Cost of Equity of Appeninn Vagyonkezelo Holding Nyrt (APPENINN.BD) is 12.65%.

The Cost of Debt of Appeninn Vagyonkezelo Holding Nyrt (APPENINN.BD) is 5.95%.

	Range	Selected
Cost of equity	10.10% - 15.20%	12.65%
Tax rate	11.20% - 13.10%	12.15%
Cost of debt	4.00% - 7.90%	5.95%
WACC	6.6% - 10.8%	8.7%

WACC

APPENINN.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.46	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	15.20%

Tax rate	11.20%	13.10%
Debt/Equity ratio	1.1	1.1
Cost of debt	4.00%	7.90%

After-tax WACC	6.6%	10.8%


Selected WACC	8.7%

APPENINN.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 APPENINN.BD:

cost_of_equity (12.65%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.46) + 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.