ZWACK.BD WACC - Weighted Average Cost of Capital

The WACC of Zwack Unicum Likoripari es Kereskedelmi Nyrt (ZWACK.BD) is 10.7%.

The Cost of Equity of Zwack Unicum Likoripari es Kereskedelmi Nyrt (ZWACK.BD) is 10.75%.

The Cost of Debt of Zwack Unicum Likoripari es Kereskedelmi Nyrt (ZWACK.BD) is 22.15%.

	Range	Selected
Cost of equity	9.90% - 11.60%	10.75%
Tax rate	18.40% - 19.60%	19.00%
Cost of debt	7.00% - 37.30%	22.15%
WACC	9.9% - 11.6%	10.7%

WACC

ZWACK.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.44	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	11.60%

Tax rate	18.40%	19.60%
Debt/Equity ratio	0	0
Cost of debt	7.00%	37.30%

After-tax WACC	9.9%	11.6%


Selected WACC	10.7%

ZWACK.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 ZWACK.BD:

cost_of_equity (10.75%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (0.44) + 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.