AKFGY.IS WACC - Weighted Average Cost of Capital

The WACC of Akfen Gayrimenkul Yatirim Ortakligi AS (AKFGY.IS) is 21.8%.

The Cost of Equity of Akfen Gayrimenkul Yatirim Ortakligi AS (AKFGY.IS) is 29.00%.

The Cost of Debt of Akfen Gayrimenkul Yatirim Ortakligi AS (AKFGY.IS) is 18.45%.

	Range	Selected
Cost of equity	27.00% - 31.00%	29.00%
Tax rate	15.00% - 23.80%	19.40%
Cost of debt	5.60% - 31.30%	18.45%
WACC	16.1% - 27.5%	21.8%

WACC

AKFGY.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.56	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.00%	31.00%

Tax rate	15.00%	23.80%
Debt/Equity ratio	0.97	0.97
Cost of debt	5.60%	31.30%

After-tax WACC	16.1%	27.5%


Selected WACC	21.8%

AKFGY.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 AKFGY.IS:

cost_of_equity (29.00%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.56) + 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.