ODAS.IS
ODAS Elektrik Uretim Sanayi Ticaret AS
Price:  
1.36 
TRY
Volume:  
168,967,000.00
Turkey | Electric Utilities
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ODAS.IS WACC - Weighted Average Cost of Capital

The WACC of ODAS Elektrik Uretim Sanayi Ticaret AS (ODAS.IS) is 15.8%.

The Cost of Equity of ODAS Elektrik Uretim Sanayi Ticaret AS (ODAS.IS) is 28.50%.
The Cost of Debt of ODAS Elektrik Uretim Sanayi Ticaret AS (ODAS.IS) is 5.00%.

Range Selected
Cost of equity 27.10% - 29.90% 28.50%
Tax rate 16.80% - 29.90% 23.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 15.3% - 16.3% 15.8%
WACC

ODAS.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.56 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 27.10% 29.90%
Tax rate 16.80% 29.90%
Debt/Equity ratio 1.06 1.06
Cost of debt 5.00% 5.00%
After-tax WACC 15.3% 16.3%
Selected WACC 15.8%

ODAS.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 ODAS.IS:

cost_of_equity (28.50%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.56) + 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.