The WACC of Besiktas Futbol Yatirimlari Sanayi ve Ticaret AS (BJKAS.IS) is 17.9%.
Range | Selected | |
Cost of equity | 27.70% - 31.60% | 29.65% |
Tax rate | 2.20% - 15.60% | 8.90% |
Cost of debt | 7.00% - 19.20% | 13.10% |
WACC | 14.2% - 21.6% | 17.9% |
Category | Low | High |
Long-term bond rate | 21.4% | 21.9% |
Equity market risk premium | 10.2% | 11.2% |
Adjusted beta | 0.62 | 0.83 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 27.70% | 31.60% |
Tax rate | 2.20% | 15.60% |
Debt/Equity ratio | 1.85 | 1.85 |
Cost of debt | 7.00% | 19.20% |
After-tax WACC | 14.2% | 21.6% |
Selected WACC | 17.9% | |
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 BJKAS.IS:
cost_of_equity (29.65%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.62) + 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.