DGGYO.IS WACC - Weighted Average Cost of Capital

The WACC of Dogus Gayrimenkul Yatirim Ortakligi AS (DGGYO.IS) is 23.3%.

The Cost of Equity of Dogus Gayrimenkul Yatirim Ortakligi AS (DGGYO.IS) is 27.85%.

The Cost of Debt of Dogus Gayrimenkul Yatirim Ortakligi AS (DGGYO.IS) is 15.85%.

	Range	Selected
Cost of equity	26.80% - 28.90%	27.85%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	5.50% - 26.20%	15.85%
WACC	20.2% - 26.4%	23.3%

WACC

DGGYO.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.54	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.80%	28.90%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.42	0.42
Cost of debt	5.50%	26.20%

After-tax WACC	20.2%	26.4%


Selected WACC	23.3%

DGGYO.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 DGGYO.IS:

cost_of_equity (27.85%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.54) + 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.