The WACC of Magyar Telekom Tavkozlesi Nyrt (MTELEKOM.BD) is 10.7%.
| Range | Selected | |
| Cost of equity | 10.60% - 12.70% | 11.65% |
| Tax rate | 19.80% - 20.50% | 20.15% |
| Cost of debt | 6.90% - 7.10% | 7.00% |
| WACC | 9.8% - 11.6% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 6.4% | 6.9% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.53 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.60% | 12.70% |
| Tax rate | 19.80% | 20.50% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 6.90% | 7.10% |
| After-tax WACC | 9.8% | 11.6% |
| Selected WACC | 10.7% | |
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 (11.65%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.53) + 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.