MTELEKOM.BD WACC - Weighted Average Cost of Capital

The WACC of Magyar Telekom Tavkozlesi Nyrt (MTELEKOM.BD) is 10.9%.

The Cost of Equity of Magyar Telekom Tavkozlesi Nyrt (MTELEKOM.BD) is 12.10%.

The Cost of Debt of Magyar Telekom Tavkozlesi Nyrt (MTELEKOM.BD) is 7.10%.

	Range	Selected
Cost of equity	11.00% - 13.20%	12.10%
Tax rate	19.80% - 20.50%	20.15%
Cost of debt	6.90% - 7.30%	7.10%
WACC	10.0% - 11.9%	10.9%

WACC

MTELEKOM.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.58	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.20%

Tax rate	19.80%	20.50%
Debt/Equity ratio	0.22	0.22
Cost of debt	6.90%	7.30%

After-tax WACC	10.0%	11.9%


Selected WACC	10.9%

MTELEKOM.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 MTELEKOM.BD:

cost_of_equity (12.10%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.58) + 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.