ORMESTER.BD WACC - Weighted Average Cost of Capital

The WACC of Ormester Vagyonvedelmi Nyrt (ORMESTER.BD) is 12.5%.

The Cost of Equity of Ormester Vagyonvedelmi Nyrt (ORMESTER.BD) is 12.75%.

The Cost of Debt of Ormester Vagyonvedelmi Nyrt (ORMESTER.BD) is 7.70%.

	Range	Selected
Cost of equity	11.20% - 14.30%	12.75%
Tax rate	15.20% - 20.40%	17.80%
Cost of debt	7.00% - 8.40%	7.70%
WACC	11.0% - 14.1%	12.5%

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	0.61	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	14.30%

Tax rate	15.20%	20.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.00%	8.40%

After-tax WACC	11.0%	14.1%


Selected WACC	12.5%

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 (12.75%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.61) + 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.