The WACC of Bak Ambalaj Sanayi ve Ticaret AS (BAKAB.IS) is 25.7%.
Range | Selected | |
Cost of equity | 28.9% - 32.3% | 30.6% |
Tax rate | 21.3% - 21.5% | 21.4% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 24.3% - 27.1% | 25.7% |
Category | Low | High |
Long-term bond rate | 21.4% | 21.9% |
Equity market risk premium | 10.2% | 11.2% |
Adjusted beta | 0.74 | 0.89 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 28.9% | 32.3% |
Tax rate | 21.3% | 21.5% |
Debt/Equity ratio | 0.22 | 0.22 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 24.3% | 27.1% |
Selected WACC | 25.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
BAKAB.IS | Bak Ambalaj Sanayi ve Ticaret AS | 0.22 | 0.64 | 0.54 |
DURDO.IS | Duran Dogan Basim Ve Ambalaj Sanayi AS | 0.65 | 1.14 | 0.76 |
FLEXO.AT | Flexopack SA | 0.59 | 0.12 | 0.08 |
GRAL.MI | Grifal SpA | 1.29 | 0.42 | 0.21 |
KAPLM.IS | Kaplamin Ambalaj Sanayi ve Ticaret AS | 0.04 | 1.06 | 1.03 |
OZRDN.IS | Ozerden Plastik Sanayi ve Ticaret AS | 0.31 | 0.84 | 0.68 |
PPAK.AT | Paperpack Printing Box Manufacturing and Paper Packaging Industrial SA | 1.1 | 0.37 | 0.2 |
RBN.L | Robinson PLC | 0.38 | 0.89 | 0.69 |
SEKUR.IS | Sekuro Plastik Ambalaj Sanayi AS | 0.3 | 0.94 | 0.76 |
VIS.AT | VIS Containers Manufacturing SA | 1.29 | 0.55 | 0.27 |
Low | High | |
Unlevered beta | 0.43 | 0.68 |
Relevered beta | 0.61 | 0.84 |
Adjusted relevered beta | 0.74 | 0.89 |
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.