ORMESTER.BD WACC - Weighted Average Cost of Capital

The WACC of Ormester Vagyonvedelmi Nyrt (ORMESTER.BD) is 11.9%.

The Cost of Equity of Ormester Vagyonvedelmi Nyrt (ORMESTER.BD) is 12.20%.

The Cost of Debt of Ormester Vagyonvedelmi Nyrt (ORMESTER.BD) is 6.50%.

	Range	Selected
Cost of equity	11.00% - 13.40%	12.20%
Tax rate	17.80% - 21.00%	19.40%
Cost of debt	6.00% - 7.00%	6.50%
WACC	10.7% - 13.1%	11.9%

WACC

ORMESTER.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	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.40%

Tax rate	17.80%	21.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	6.00%	7.00%

After-tax WACC	10.7%	13.1%


Selected WACC	11.9%

ORMESTER.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 ORMESTER.BD:

cost_of_equity (12.20%) = 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.