BRKSN.IS WACC - Weighted Average Cost of Capital

The WACC of Berkosan Yalitim ve Tecrit Maddeleri Uretim ve Ticaret AS (BRKSN.IS) is 26.5%.

The Cost of Equity of Berkosan Yalitim ve Tecrit Maddeleri Uretim ve Ticaret AS (BRKSN.IS) is 29.35%.

The Cost of Debt of Berkosan Yalitim ve Tecrit Maddeleri Uretim ve Ticaret AS (BRKSN.IS) is 17.00%.

	Range	Selected
Cost of equity	27.70% - 31.00%	29.35%
Tax rate	32.40% - 39.70%	36.05%
Cost of debt	11.30% - 22.70%	17.00%
WACC	24.6% - 28.4%	26.5%

WACC

BRKSN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.63	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.70%	31.00%

Tax rate	32.40%	39.70%
Debt/Equity ratio	0.18	0.18
Cost of debt	11.30%	22.70%

After-tax WACC	24.6%	28.4%


Selected WACC	26.5%

BRKSN.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 BRKSN.IS:

cost_of_equity (29.35%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.63) + 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.