ADKA.TA WACC - Weighted Average Cost of Capital
The WACC of Adika Style Ltd (ADKA.TA) is 11.3%.
| Range | Selected | |
| Cost of equity | 10.1% - 13.1% | 11.6% |
| Tax rate | 31.4% - 34.1% | 32.75% |
| Cost of debt | 7.0% - 26.5% | 16.75% |
| WACC | 6.4% - 16.1% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 13.1% |
| Tax rate | 31.4% | 34.1% |
| Debt/Equity ratio | 2.34 | 2.34 |
| Cost of debt | 7.0% | 26.5% |
| After-tax WACC | 6.4% | 16.1% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADKA.TA | Adika Style Ltd | 2.34 | 1.15 | 0.44 |
| 069920.KQ | ISE Commerce Co Ltd | 0.13 | 1.12 | 1.03 |
| 080010.KQ | eSang Networks Co Ltd | 0.32 | 0.28 | 0.23 |
| 1F1.SI | Y Ventures Group Ltd | 0.05 | 0.71 | 0.69 |
| 2673.T | Yumemitsuketai Co Ltd | 0.47 | 0.41 | 0.31 |
| 3185.T | Dream Vision Co Ltd | 0.51 | 0.06 | 0.04 |
| 3192.T | Shirohato Co Ltd | 1.66 | 0.42 | 0.2 |
| 3556.T | RenetJapanGroup Inc | 0.72 | 1.26 | 0.85 |
| 7695.T | Koukandekirukun Inc | 0.11 | 0.39 | 0.37 |
| DMC.AX | Design Milk Co Ltd | 0.05 | 0.3 | 0.29 |
| Low | High | |
| Unlevered beta | 0.3 | 0.4 |
| Relevered beta | 0.78 | 1.03 |
| Adjusted relevered beta | 0.85 | 1.02 |
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 (11.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.