DMSAS.IS WACC - Weighted Average Cost of Capital

The WACC of Demisas Dokum Emaye Mamulleri Sanayi AS (DMSAS.IS) is 25.3%.

The Cost of Equity of Demisas Dokum Emaye Mamulleri Sanayi AS (DMSAS.IS) is 29.45%.

The Cost of Debt of Demisas Dokum Emaye Mamulleri Sanayi AS (DMSAS.IS) is 18.45%.

	Range	Selected
Cost of equity	26.00% - 32.90%	29.45%
Tax rate	14.20% - 17.20%	15.70%
Cost of debt	12.80% - 24.10%	18.45%
WACC	21.6% - 29.1%	25.3%

WACC

DMSAS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.45	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.00%	32.90%

Tax rate	14.20%	17.20%
Debt/Equity ratio	0.42	0.42
Cost of debt	12.80%	24.10%

After-tax WACC	21.6%	29.1%


Selected WACC	25.3%

DMSAS.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 DMSAS.IS:

cost_of_equity (29.45%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.45) + 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.