LINK.IS WACC - Weighted Average Cost of Capital

The WACC of Link Bilgisayar Sistemleri Yazilimi ve Donanimi Sanayi ve Ticaret AS (LINK.IS) is 19.3%.

The Cost of Equity of Link Bilgisayar Sistemleri Yazilimi ve Donanimi Sanayi ve Ticaret AS (LINK.IS) is 32.55%.

The Cost of Debt of Link Bilgisayar Sistemleri Yazilimi ve Donanimi Sanayi ve Ticaret AS (LINK.IS) is 7.00%.

	Range	Selected
Cost of equity	29.20% - 35.90%	32.55%
Tax rate	13.40% - 15.10%	14.25%
Cost of debt	7.00% - 7.00%	7.00%
WACC	17.6% - 20.9%	19.3%

WACC

LINK.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.77	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.20%	35.90%

Tax rate	13.40%	15.10%
Debt/Equity ratio	1	1
Cost of debt	7.00%	7.00%

After-tax WACC	17.6%	20.9%


Selected WACC	19.3%

LINK.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 LINK.IS:

cost_of_equity (32.55%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.77) + 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.