MOL.BD WACC - Weighted Average Cost of Capital

The WACC of MOL Magyar Olajes Gazipari Nyrt (MOL.BD) is 11.5%.

The Cost of Equity of MOL Magyar Olajes Gazipari Nyrt (MOL.BD) is 13.50%.

The Cost of Debt of MOL Magyar Olajes Gazipari Nyrt (MOL.BD) is 5.50%.

	Range	Selected
Cost of equity	11.90% - 15.10%	13.50%
Tax rate	23.30% - 27.90%	25.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	10.0% - 13.0%	11.5%

WACC

MOL.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.69	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.10%

Tax rate	23.30%	27.90%
Debt/Equity ratio	0.26	0.26
Cost of debt	4.00%	7.00%

After-tax WACC	10.0%	13.0%


Selected WACC	11.5%

MOL.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 MOL.BD:

cost_of_equity (13.50%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.69) + 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.