INDES.IS WACC - Weighted Average Cost of Capital

The WACC of Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret AS (INDES.IS) is 24.4%.

The Cost of Equity of Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret AS (INDES.IS) is 29.15%.

The Cost of Debt of Indeks Bilgisayar Sistemleri Muhendislik Sanayi ve Ticaret AS (INDES.IS) is 18.10%.

	Range	Selected
Cost of equity	27.60% - 30.70%	29.15%
Tax rate	21.60% - 23.10%	22.35%
Cost of debt	10.80% - 25.40%	18.10%
WACC	21.6% - 27.2%	24.4%

WACC

INDES.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.61	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.60%	30.70%

Tax rate	21.60%	23.10%
Debt/Equity ratio	0.45	0.45
Cost of debt	10.80%	25.40%

After-tax WACC	21.6%	27.2%


Selected WACC	24.4%

INDES.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 INDES.IS:

cost_of_equity (29.15%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.61) + 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.