The WACC of Batisoke Soke Cimento Sanayii TAS (BSOKE.IS) is 19.4%.
| Range | Selected | |
| Cost of equity | 30.20% - 39.70% | 34.95% |
| Tax rate | 9.90% - 16.30% | 13.10% |
| Cost of debt | 7.00% - 7.00% | 7.00% |
| WACC | 17.4% - 21.5% | 19.4% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.87 | 1.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 30.20% | 39.70% |
| Tax rate | 9.90% | 16.30% |
| Debt/Equity ratio | 1.16 | 1.16 |
| Cost of debt | 7.00% | 7.00% |
| After-tax WACC | 17.4% | 21.5% |
| Selected WACC | 19.4% | |
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 BSOKE.IS:
cost_of_equity (34.95%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.87) + 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.