HEKTS.IS WACC - Weighted Average Cost of Capital

The WACC of Hektas Ticaret TAS (HEKTS.IS) is 27.6%.

The Cost of Equity of Hektas Ticaret TAS (HEKTS.IS) is 28.30%.

The Cost of Debt of Hektas Ticaret TAS (HEKTS.IS) is 27.10%.

	Range	Selected
Cost of equity	26.80% - 29.80%	28.30%
Tax rate	15.20% - 19.10%	17.15%
Cost of debt	23.70% - 30.50%	27.10%
WACC	26.0% - 29.1%	27.6%

WACC

HEKTS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.53	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.80%	29.80%

Tax rate	15.20%	19.10%
Debt/Equity ratio	0.14	0.14
Cost of debt	23.70%	30.50%

After-tax WACC	26.0%	29.1%


Selected WACC	27.6%

HEKTS.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 HEKTS.IS:

cost_of_equity (28.30%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.53) + 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.