RICHTER.BD WACC - Weighted Average Cost of Capital

The WACC of Richter Gedeon Vegyeszeti Gyar Nyrt (RICHTER.BD) is 13.6%.

The Cost of Equity of Richter Gedeon Vegyeszeti Gyar Nyrt (RICHTER.BD) is 13.55%.

The Cost of Debt of Richter Gedeon Vegyeszeti Gyar Nyrt (RICHTER.BD) is 16.30%.

	Range	Selected
Cost of equity	12.60% - 14.50%	13.55%
Tax rate	5.30% - 9.70%	7.50%
Cost of debt	7.00% - 25.60%	16.30%
WACC	12.4% - 14.8%	13.6%

WACC

RICHTER.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.78	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	14.50%

Tax rate	5.30%	9.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.00%	25.60%

After-tax WACC	12.4%	14.8%


Selected WACC	13.6%

RICHTER.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 RICHTER.BD:

cost_of_equity (13.55%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.78) + 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.