The WACC of Is Yatirim Menkul Degerler AS (ISMEN.IS) is 23.0%.
| Range | Selected | |
| Cost of equity | 26.00% - 29.00% | 27.50% |
| Tax rate | 21.50% - 21.90% | 21.70% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 21.8% - 24.2% | 23.0% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.46 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.00% | 29.00% |
| Tax rate | 21.50% | 21.90% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 21.8% | 24.2% |
| Selected WACC | 23.0% | |
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 ISMEN.IS:
cost_of_equity (27.50%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.46) + 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.