KATMR.IS WACC - Weighted Average Cost of Capital

The WACC of Katmerciler Arac Ustu Ekipman Sanayi ve Ticaret AS (KATMR.IS) is 23.7%.

The Cost of Equity of Katmerciler Arac Ustu Ekipman Sanayi ve Ticaret AS (KATMR.IS) is 36.40%.

The Cost of Debt of Katmerciler Arac Ustu Ekipman Sanayi ve Ticaret AS (KATMR.IS) is 17.00%.

	Range	Selected
Cost of equity	34.00% - 38.80%	36.40%
Tax rate	17.90% - 18.70%	18.30%
Cost of debt	10.30% - 23.70%	17.00%
WACC	19.6% - 27.8%	23.7%

WACC

KATMR.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.24	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	34.00%	38.80%

Tax rate	17.90%	18.70%
Debt/Equity ratio	1.29	1.29
Cost of debt	10.30%	23.70%

After-tax WACC	19.6%	27.8%


Selected WACC	23.7%

KATMR.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 KATMR.IS:

cost_of_equity (36.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.24) + 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.