The WACC of Gedik Yatirim Menkul Degerler AS (GEDIK.IS) is 22.4%.
| Range | Selected | |
| Cost of equity | 25.60% - 28.00% | 26.80% |
| Tax rate | 13.00% - 17.90% | 15.45% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 21.4% - 23.3% | 22.4% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.42 | 0.51 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 25.60% | 28.00% |
| Tax rate | 13.00% | 17.90% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 21.4% | 23.3% |
| Selected WACC | 22.4% | |
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 GEDIK.IS:
cost_of_equity (26.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.42) + 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.