CIGPANNONIA.BD WACC - Weighted Average Cost of Capital

The WACC of CIG Pannonia Eletbiztosito Nyrt (CIGPANNONIA.BD) is 12.1%.

The Cost of Equity of CIG Pannonia Eletbiztosito Nyrt (CIGPANNONIA.BD) is 12.20%.

The Cost of Debt of CIG Pannonia Eletbiztosito Nyrt (CIGPANNONIA.BD) is 5.00%.

	Range	Selected
Cost of equity	11.20% - 13.20%	12.20%
Tax rate	12.40% - 17.50%	14.95%
Cost of debt	5.00% - 5.00%	5.00%
WACC	11.1% - 13.1%	12.1%

WACC

CIGPANNONIA.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.61	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	13.20%

Tax rate	12.40%	17.50%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.00%	5.00%

After-tax WACC	11.1%	13.1%


Selected WACC	12.1%

CIGPANNONIA.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 CIGPANNONIA.BD:

cost_of_equity (12.20%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.61) + 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.