KAPLM.IS WACC - Weighted Average Cost of Capital

The WACC of Kaplamin Ambalaj Sanayi ve Ticaret AS (KAPLM.IS) is 28.4%.

The Cost of Equity of Kaplamin Ambalaj Sanayi ve Ticaret AS (KAPLM.IS) is 28.80%.

The Cost of Debt of Kaplamin Ambalaj Sanayi ve Ticaret AS (KAPLM.IS) is 25.25%.

	Range	Selected
Cost of equity	27.00% - 30.60%	28.80%
Tax rate	17.90% - 18.30%	18.10%
Cost of debt	23.70% - 26.80%	25.25%
WACC	26.6% - 30.2%	28.4%

WACC

KAPLM.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.55	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.00%	30.60%

Tax rate	17.90%	18.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	23.70%	26.80%

After-tax WACC	26.6%	30.2%


Selected WACC	28.4%

KAPLM.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 KAPLM.IS:

cost_of_equity (28.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.55) + 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.