The WACC of Otokar Otomotiv ve Savunma Sanayi AS (OTKAR.IS) is 28.1%.
Range | Selected | |
Cost of equity | 27.3% - 32.4% | 29.85% |
Tax rate | 2.1% - 5.3% | 3.7% |
Cost of debt | 16.4% - 22.7% | 19.55% |
WACC | 25.5% - 30.7% | 28.1% |
Category | Low | High |
Long-term bond rate | 21.4% | 21.9% |
Equity market risk premium | 10.2% | 11.2% |
Adjusted beta | 0.58 | 0.89 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 27.3% | 32.4% |
Tax rate | 2.1% | 5.3% |
Debt/Equity ratio | 0.19 | 0.19 |
Cost of debt | 16.4% | 22.7% |
After-tax WACC | 25.5% | 30.7% |
Selected WACC | 28.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
OTKAR.IS | Otokar Otomotiv ve Savunma Sanayi AS | 0.19 | 1.22 | 1.03 |
JANTS.IS | Jantsa Jant Sanayi ve Ticaret AS | 0.01 | 0.85 | 0.84 |
MSAG.DE | MS Industrie AG | 0.18 | 0.39 | 0.33 |
PAT.WA | Patentus SA | 0.05 | 0.3 | 0.28 |
PHLY.OL | Philly Shipyard ASA | 1.18 | 0.31 | 0.14 |
PIG.PA | Haulotte Group SA | 3.89 | 0.87 | 0.18 |
RABA.BD | Raba Jarmuipari Holding Nyrt | 1.14 | 0.42 | 0.2 |
SF3.DE | STS Group AG | 2.9 | 0.49 | 0.13 |
TES.MI | Tesmec SpA | 6 | 0.44 | 0.06 |
TLGO.MC | Talgo SA | 1.22 | 0.84 | 0.39 |
Low | High | |
Unlevered beta | 0.19 | 0.3 |
Relevered beta | 0.37 | 0.84 |
Adjusted relevered beta | 0.58 | 0.89 |
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.