BAKAB.IS
Bak Ambalaj Sanayi ve Ticaret AS
Price:  
18.64 
TRY
Volume:  
59,206
Turkey | Containers & Packaging

BAKAB.IS WACC - Weighted Average Cost of Capital

The WACC of Bak Ambalaj Sanayi ve Ticaret AS (BAKAB.IS) is 25.7%.

The Cost of Equity of Bak Ambalaj Sanayi ve Ticaret AS (BAKAB.IS) is 30.6%.
The Cost of Debt of Bak Ambalaj Sanayi ve Ticaret AS (BAKAB.IS) is 5%.

RangeSelected
Cost of equity28.9% - 32.3%30.6%
Tax rate21.3% - 21.5%21.4%
Cost of debt5.0% - 5.0%5%
WACC24.3% - 27.1%25.7%
WACC

BAKAB.IS WACC calculation

CategoryLowHigh
Long-term bond rate21.4%21.9%
Equity market risk premium10.2%11.2%
Adjusted beta0.740.89
Additional risk adjustments0.0%0.5%
Cost of equity28.9%32.3%
Tax rate21.3%21.5%
Debt/Equity ratio
0.220.22
Cost of debt5.0%5.0%
After-tax WACC24.3%27.1%
Selected WACC25.7%

BAKAB.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 BAKAB.IS:

cost_of_equity (30.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.74) + 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.