DOAS.IS WACC - Weighted Average Cost of Capital

The WACC of Dogus Otomotiv Servis ve Ticaret AS (DOAS.IS) is 26.9%.

The Cost of Equity of Dogus Otomotiv Servis ve Ticaret AS (DOAS.IS) is 31.80%.

The Cost of Debt of Dogus Otomotiv Servis ve Ticaret AS (DOAS.IS) is 19.35%.

	Range	Selected
Cost of equity	29.60% - 34.00%	31.80%
Tax rate	16.70% - 18.90%	17.80%
Cost of debt	16.00% - 22.70%	19.35%
WACC	24.7% - 29.2%	26.9%

WACC

DOAS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.81	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.60%	34.00%

Tax rate	16.70%	18.90%
Debt/Equity ratio	0.44	0.44
Cost of debt	16.00%	22.70%

After-tax WACC	24.7%	29.2%


Selected WACC	26.9%

DOAS.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 DOAS.IS:

cost_of_equity (31.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.81) + 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.