KARTN.IS WACC - Weighted Average Cost of Capital

The WACC of Kartonsan Karton Sanayi ve Ticaret AS (KARTN.IS) is 31.4%.

The Cost of Equity of Kartonsan Karton Sanayi ve Ticaret AS (KARTN.IS) is 28.55%.

The Cost of Debt of Kartonsan Karton Sanayi ve Ticaret AS (KARTN.IS) is 2,342.90%.

	Range	Selected
Cost of equity	26.70% - 30.40%	28.55%
Tax rate	17.60% - 19.90%	18.75%
Cost of debt	22.20% - 4,663.60%	2,342.90%
WACC	26.6% - 36.2%	31.4%

WACC

KARTN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.52	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.70%	30.40%

Tax rate	17.60%	19.90%
Debt/Equity ratio	0	0
Cost of debt	22.20%	4,663.60%

After-tax WACC	26.6%	36.2%


Selected WACC	31.4%

KARTN.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 KARTN.IS:

cost_of_equity (28.55%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.52) + 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.