AYEN.IS WACC - Weighted Average Cost of Capital

The WACC of Ayen Enerji AS (AYEN.IS) is 19.6%.

The Cost of Equity of Ayen Enerji AS (AYEN.IS) is 29.45%.

The Cost of Debt of Ayen Enerji AS (AYEN.IS) is 17.60%.

	Range	Selected
Cost of equity	27.20% - 31.70%	29.45%
Tax rate	24.60% - 36.40%	30.50%
Cost of debt	7.90% - 27.30%	17.60%
WACC	15.5% - 23.8%	19.6%

WACC

AYEN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.57	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.20%	31.70%

Tax rate	24.60%	36.40%
Debt/Equity ratio	1.23	1.23
Cost of debt	7.90%	27.30%

After-tax WACC	15.5%	23.8%


Selected WACC	19.6%

AYEN.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 AYEN.IS:

cost_of_equity (29.45%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.57) + 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.