ARMDA.IS WACC - Weighted Average Cost of Capital

The WACC of Armada Bilgisayar Sistemleri Sanayi ve Ticaret AS (ARMDA.IS) is 28.0%.

The Cost of Equity of Armada Bilgisayar Sistemleri Sanayi ve Ticaret AS (ARMDA.IS) is 30.25%.

The Cost of Debt of Armada Bilgisayar Sistemleri Sanayi ve Ticaret AS (ARMDA.IS) is 24.10%.

	Range	Selected
Cost of equity	28.60% - 31.90%	30.25%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	24.10% - 24.10%	24.10%
WACC	26.8% - 29.3%	28.0%

WACC

ARMDA.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	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.60%	31.90%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.25	0.25
Cost of debt	24.10%	24.10%

After-tax WACC	26.8%	29.3%


Selected WACC	28.0%

ARMDA.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 ARMDA.IS:

cost_of_equity (30.25%) = 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.