ADKA.TA WACC - Weighted Average Cost of Capital

The WACC of Adika Style Ltd (ADKA.TA) is 11.2%.

The Cost of Equity of Adika Style Ltd (ADKA.TA) is 11.35%.

The Cost of Debt of Adika Style Ltd (ADKA.TA) is 16.75%.

	Range	Selected
Cost of equity	9.60% - 13.10%	11.35%
Tax rate	31.40% - 34.10%	32.75%
Cost of debt	7.00% - 26.50%	16.75%
WACC	6.2% - 16.1%	11.2%

WACC

ADKA.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.78	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.10%

Tax rate	31.40%	34.10%
Debt/Equity ratio	2.34	2.34
Cost of debt	7.00%	26.50%

After-tax WACC	6.2%	16.1%


Selected WACC	11.2%

ADKA.TA'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 ADKA.TA:

cost_of_equity (11.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * 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.