DOBUR.IS WACC - Weighted Average Cost of Capital

The WACC of Dogan Burda Dergi Yayincilik ve Pazarlama AS (DOBUR.IS) is 29.3%.

The Cost of Equity of Dogan Burda Dergi Yayincilik ve Pazarlama AS (DOBUR.IS) is 29.55%.

The Cost of Debt of Dogan Burda Dergi Yayincilik ve Pazarlama AS (DOBUR.IS) is 5.00%.

	Range	Selected
Cost of equity	27.70% - 31.40%	29.55%
Tax rate	14.70% - 18.60%	16.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	27.4% - 31.1%	29.3%

WACC

DOBUR.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.62	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.70%	31.40%

Tax rate	14.70%	18.60%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.00%	5.00%

After-tax WACC	27.4%	31.1%


Selected WACC	29.3%

DOBUR.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 DOBUR.IS:

cost_of_equity (29.55%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.62) + 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.