AKCNS.IS WACC - Weighted Average Cost of Capital

The WACC of Akcansa Cimento Sanayi ve Ticaret AS (AKCNS.IS) is 28.6%.

The Cost of Equity of Akcansa Cimento Sanayi ve Ticaret AS (AKCNS.IS) is 30.60%.

The Cost of Debt of Akcansa Cimento Sanayi ve Ticaret AS (AKCNS.IS) is 21.30%.

	Range	Selected
Cost of equity	28.70% - 32.50%	30.60%
Tax rate	17.50% - 18.20%	17.85%
Cost of debt	19.90% - 22.70%	21.30%
WACC	26.9% - 30.4%	28.6%

WACC

AKCNS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.72	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.70%	32.50%

Tax rate	17.50%	18.20%
Debt/Equity ratio	0.18	0.18
Cost of debt	19.90%	22.70%

After-tax WACC	26.9%	30.4%


Selected WACC	28.6%

AKCNS.IS'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 AKCNS.IS:

cost_of_equity (30.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.72) + 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.