ASUZU.IS WACC - Weighted Average Cost of Capital

The WACC of Anadolu Isuzu Otomotiv Sanayii ve Ticaret AS (ASUZU.IS) is 26.6%.

The Cost of Equity of Anadolu Isuzu Otomotiv Sanayii ve Ticaret AS (ASUZU.IS) is 29.40%.

The Cost of Debt of Anadolu Isuzu Otomotiv Sanayii ve Ticaret AS (ASUZU.IS) is 18.40%.

	Range	Selected
Cost of equity	27.60% - 31.20%	29.40%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	10.60% - 26.20%	18.40%
WACC	24.0% - 29.2%	26.6%

WACC

ASUZU.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.61	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.60%	31.20%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	10.60%	26.20%

After-tax WACC	24.0%	29.2%


Selected WACC	26.6%

ASUZU.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 ASUZU.IS:

cost_of_equity (29.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.61) + 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.