OTKAR.IS
Otokar Otomotiv ve Savunma Sanayi AS
Price:  
414.50 
TRY
Volume:  
279,927.00
Turkey | Machinery
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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%.

Range Selected
Cost of equity 27.30% - 32.40% 29.85%
Tax rate 2.10% - 5.30% 3.70%
Cost of debt 16.40% - 22.70% 19.55%
WACC 25.5% - 30.7% 28.1%
WACC

OTKAR.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.58 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 27.30% 32.40%
Tax rate 2.10% 5.30%
Debt/Equity ratio 0.19 0.19
Cost of debt 16.40% 22.70%
After-tax WACC 25.5% 30.7%
Selected WACC 28.1%

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.