MAKTK.IS WACC - Weighted Average Cost of Capital

The WACC of Makina Takim Endustrisi AS (MAKTK.IS) is 27.2%.

The Cost of Equity of Makina Takim Endustrisi AS (MAKTK.IS) is 27.60%.

The Cost of Debt of Makina Takim Endustrisi AS (MAKTK.IS) is 16.40%.

	Range	Selected
Cost of equity	25.80% - 29.40%	27.60%
Tax rate	18.10% - 20.00%	19.05%
Cost of debt	10.80% - 22.00%	16.40%
WACC	25.4% - 29.1%	27.2%

WACC

MAKTK.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.43	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.80%	29.40%

Tax rate	18.10%	20.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	10.80%	22.00%

After-tax WACC	25.4%	29.1%


Selected WACC	27.2%

MAKTK.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 MAKTK.IS:

cost_of_equity (27.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.43) + 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.