The WACC of Kafein Yazilim Hizmetleri Ticaret AS (KFEIN.IS) is 43.2%.
| Range | Selected | |
| Cost of equity | 28.70% - 31.50% | 30.10% |
| Tax rate | 4.90% - 5.60% | 5.25% |
| Cost of debt | 23.10% - 635.40% | 329.25% |
| WACC | 28.4% - 58.1% | 43.2% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.72 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 28.70% | 31.50% |
| Tax rate | 4.90% | 5.60% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 23.10% | 635.40% |
| After-tax WACC | 28.4% | 58.1% |
| Selected WACC | 43.2% | |
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 KFEIN.IS:
cost_of_equity (30.10%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.72) + 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.