DNISI.IS WACC - Weighted Average Cost of Capital

The WACC of Dinamik Isi Makina Yalitim Malzemeleri Sanayi ve Ticaret AS (DNISI.IS) is 30.5%.

The Cost of Equity of Dinamik Isi Makina Yalitim Malzemeleri Sanayi ve Ticaret AS (DNISI.IS) is 31.15%.

The Cost of Debt of Dinamik Isi Makina Yalitim Malzemeleri Sanayi ve Ticaret AS (DNISI.IS) is 18.05%.

	Range	Selected
Cost of equity	29.00% - 33.30%	31.15%
Tax rate	21.00% - 22.20%	21.60%
Cost of debt	13.00% - 23.10%	18.05%
WACC	28.3% - 32.7%	30.5%

WACC

DNISI.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.75	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.00%	33.30%

Tax rate	21.00%	22.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	13.00%	23.10%

After-tax WACC	28.3%	32.7%


Selected WACC	30.5%

DNISI.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 DNISI.IS:

cost_of_equity (31.15%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.75) + 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.