KRTEK.IS WACC - Weighted Average Cost of Capital

The WACC of Karsu Tekstil Sanayi ve Ticaret AS (KRTEK.IS) is 23.0%.

The Cost of Equity of Karsu Tekstil Sanayi ve Ticaret AS (KRTEK.IS) is 32.40%.

The Cost of Debt of Karsu Tekstil Sanayi ve Ticaret AS (KRTEK.IS) is 16.05%.

	Range	Selected
Cost of equity	30.50% - 34.30%	32.40%
Tax rate	14.10% - 22.20%	18.15%
Cost of debt	5.90% - 26.20%	16.05%
WACC	18.3% - 27.7%	23.0%

WACC

KRTEK.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.9	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	30.50%	34.30%

Tax rate	14.10%	22.20%
Debt/Equity ratio	0.92	0.92
Cost of debt	5.90%	26.20%

After-tax WACC	18.3%	27.7%


Selected WACC	23.0%

KRTEK.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 KRTEK.IS:

cost_of_equity (32.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.9) + 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.