NORDTELEKOM.BD WACC - Weighted Average Cost of Capital

The WACC of Nordtelekom Tavkozlesi Szolgaltato Nyrt (NORDTELEKOM.BD) is 7.1%.

The Cost of Equity of Nordtelekom Tavkozlesi Szolgaltato Nyrt (NORDTELEKOM.BD) is 9.15%.

The Cost of Debt of Nordtelekom Tavkozlesi Szolgaltato Nyrt (NORDTELEKOM.BD) is 5.00%.

	Range	Selected
Cost of equity	7.90% - 10.40%	9.15%
Tax rate	-% - 0.30%	0.15%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.5% - 7.7%	7.1%

WACC

NORDTELEKOM.BD WACC calculation

Category	Low	High

Long-term bond rate	6.0%	6.5%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.24	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	10.40%

Tax rate	-%	0.30%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	6.5%	7.7%


Selected WACC	7.1%

NORDTELEKOM.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 NORDTELEKOM.BD:

cost_of_equity (9.15%) = risk_free_rate (6.25%) + equity_risk_premium (8.40%) * adjusted_beta (0.24) + 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.