KAREL.IS WACC - Weighted Average Cost of Capital

The WACC of Karel Elektronik Sanayi ve Ticaret AS (KAREL.IS) is 26.2%.

The Cost of Equity of Karel Elektronik Sanayi ve Ticaret AS (KAREL.IS) is 30.60%.

The Cost of Debt of Karel Elektronik Sanayi ve Ticaret AS (KAREL.IS) is 14.20%.

	Range	Selected
Cost of equity	29.40% - 31.80%	30.60%
Tax rate	14.40% - 15.20%	14.80%
Cost of debt	6.00% - 22.40%	14.20%
WACC	23.6% - 28.8%	26.2%

WACC

KAREL.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.79	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.40%	31.80%

Tax rate	14.40%	15.20%
Debt/Equity ratio	0.31	0.31
Cost of debt	6.00%	22.40%

After-tax WACC	23.6%	28.8%


Selected WACC	26.2%

KAREL.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 KAREL.IS:

cost_of_equity (30.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.79) + 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.