OTKAR.IS
Otokar Otomotiv ve Savunma Sanayi AS
Price:  
414.5 
TRY
Volume:  
279,927
Turkey | Machinery

OTKAR.IS WACC - Weighted Average Cost of Capital

The WACC of Otokar Otomotiv ve Savunma Sanayi AS (OTKAR.IS) is 28.1%.

The Cost of Equity of Otokar Otomotiv ve Savunma Sanayi AS (OTKAR.IS) is 29.85%.
The Cost of Debt of Otokar Otomotiv ve Savunma Sanayi AS (OTKAR.IS) is 19.55%.

RangeSelected
Cost of equity27.3% - 32.4%29.85%
Tax rate2.1% - 5.3%3.7%
Cost of debt16.4% - 22.7%19.55%
WACC25.5% - 30.7%28.1%
WACC

OTKAR.IS WACC calculation

CategoryLowHigh
Long-term bond rate21.4%21.9%
Equity market risk premium10.2%11.2%
Adjusted beta0.580.89
Additional risk adjustments0.0%0.5%
Cost of equity27.3%32.4%
Tax rate2.1%5.3%
Debt/Equity ratio
0.190.19
Cost of debt16.4%22.7%
After-tax WACC25.5%30.7%
Selected WACC28.1%

OTKAR.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 OTKAR.IS:

cost_of_equity (29.85%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.58) + 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.