DAGI.IS WACC - Weighted Average Cost of Capital

The WACC of Dagi Giyim Sanayi ve Ticaret AS (DAGI.IS) is 26.3%.

The Cost of Equity of Dagi Giyim Sanayi ve Ticaret AS (DAGI.IS) is 28.10%.

The Cost of Debt of Dagi Giyim Sanayi ve Ticaret AS (DAGI.IS) is 19.90%.

	Range	Selected
Cost of equity	26.90% - 29.30%	28.10%
Tax rate	10.30% - 17.00%	13.65%
Cost of debt	8.50% - 31.30%	19.90%
WACC	23.8% - 28.8%	26.3%

WACC

DAGI.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.55	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.90%	29.30%

Tax rate	10.30%	17.00%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.50%	31.30%

After-tax WACC	23.8%	28.8%


Selected WACC	26.3%

DAGI.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 DAGI.IS:

cost_of_equity (28.10%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.55) + 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.