LKD.WA WACC - Weighted Average Cost of Capital

The WACC of Lokum Deweloper SA (LKD.WA) is 8.3%.

The Cost of Equity of Lokum Deweloper SA (LKD.WA) is 9.00%.

The Cost of Debt of Lokum Deweloper SA (LKD.WA) is 6.30%.

	Range	Selected
Cost of equity	8.10% - 9.90%	9.00%
Tax rate	19.40% - 20.50%	19.95%
Cost of debt	6.20% - 6.40%	6.30%
WACC	7.6% - 9.1%	8.3%

WACC

LKD.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.41	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.10%	9.90%

Tax rate	19.40%	20.50%
Debt/Equity ratio	0.2	0.2
Cost of debt	6.20%	6.40%

After-tax WACC	7.6%	9.1%


Selected WACC	8.3%

LKD.WA'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 LKD.WA:

cost_of_equity (9.00%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.41) + 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.