KUTPO.IS
Kutahya Porselen Sanayi AS
Price:  
45.80 
TRY
Volume:  
290,771.00
Turkey | Household Durables
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

KUTPO.IS WACC - Weighted Average Cost of Capital

The WACC of Kutahya Porselen Sanayi AS (KUTPO.IS) is 27.0%.

The Cost of Equity of Kutahya Porselen Sanayi AS (KUTPO.IS) is 27.85%.
The Cost of Debt of Kutahya Porselen Sanayi AS (KUTPO.IS) is 5.00%.

Range Selected
Cost of equity 26.70% - 29.00% 27.85%
Tax rate 19.50% - 20.40% 19.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 25.9% - 28.1% 27.0%
WACC

KUTPO.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.52 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 26.70% 29.00%
Tax rate 19.50% 20.40%
Debt/Equity ratio 0.04 0.04
Cost of debt 5.00% 5.00%
After-tax WACC 25.9% 28.1%
Selected WACC 27.0%

KUTPO.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 KUTPO.IS:

cost_of_equity (27.85%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.52) + 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.