KNFRT.IS WACC - Weighted Average Cost of Capital

The WACC of Konfrut Gida Sanayi ve Ticaret AS (KNFRT.IS) is 26.7%.

The Cost of Equity of Konfrut Gida Sanayi ve Ticaret AS (KNFRT.IS) is 28.10%.

The Cost of Debt of Konfrut Gida Sanayi ve Ticaret AS (KNFRT.IS) is 14.35%.

	Range	Selected
Cost of equity	26.10% - 30.10%	28.10%
Tax rate	12.80% - 17.80%	15.30%
Cost of debt	6.70% - 22.00%	14.35%
WACC	24.3% - 29.1%	26.7%

WACC

KNFRT.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.46	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.10%	30.10%

Tax rate	12.80%	17.80%
Debt/Equity ratio	0.09	0.09
Cost of debt	6.70%	22.00%

After-tax WACC	24.3%	29.1%


Selected WACC	26.7%

KNFRT.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 KNFRT.IS:

cost_of_equity (28.10%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.46) + 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.