KCHOL.E.IS WACC - Weighted Average Cost of Capital

The WACC of Koc Holding AS (KCHOL.E.IS) is 22.6%.

The Cost of Equity of Koc Holding AS (KCHOL.E.IS) is 51.95%.

The Cost of Debt of Koc Holding AS (KCHOL.E.IS) is 20.05%.

	Range	Selected
Cost of equity	49.00% - 54.90%	51.95%
Tax rate	26.50% - 41.90%	34.20%
Cost of debt	6.30% - 33.80%	20.05%
WACC	16.3% - 28.9%	22.6%

WACC

KCHOL.E.IS WACC calculation

Category	Low	High

Long-term bond rate	28.6%	29.1%
Equity market risk premium	14.6%	15.6%
Adjusted beta	1.4	1.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	49.00%	54.90%

Tax rate	26.50%	41.90%
Debt/Equity ratio	2.82	2.82
Cost of debt	6.30%	33.80%

After-tax WACC	16.3%	28.9%


Selected WACC	22.6%

KCHOL.E.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 KCHOL.E.IS:

cost_of_equity (51.95%) = risk_free_rate (28.85%) + equity_risk_premium (15.10%) * adjusted_beta (1.4) + 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.