ARENA.IS WACC - Weighted Average Cost of Capital

The WACC of Arena Bilgisayar Sanayi ve Ticaret AS (ARENA.IS) is 28.6%.

The Cost of Equity of Arena Bilgisayar Sanayi ve Ticaret AS (ARENA.IS) is 30.45%.

The Cost of Debt of Arena Bilgisayar Sanayi ve Ticaret AS (ARENA.IS) is 28.35%.

	Range	Selected
Cost of equity	28.80% - 32.10%	30.45%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	27.30% - 29.40%	28.35%
WACC	27.1% - 30.0%	28.6%

WACC

ARENA.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.73	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.80%	32.10%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.3	0.3
Cost of debt	27.30%	29.40%

After-tax WACC	27.1%	30.0%


Selected WACC	28.6%

ARENA.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 ARENA.IS:

cost_of_equity (30.45%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.73) + 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.