Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.63	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.7%	31.7%

Tax rate	12.6%	15.1%
Debt/Equity ratio	0.09	0.09
Cost of debt	24.1%	24.1%

After-tax WACC	27.2%	30.8%


Selected WACC	29.0%

OYAKC.IS WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

OYAKC.IS	Oyak Cimento Fabrikalari AS	0.09	0.59	0.55
AKCNS.IS	Akcansa Cimento Sanayi ve Ticaret AS	0.18	1.04	0.91
CIMSA.IS	Cimsa Cimento Sanayi ve Ticaret AS	0.44	1.03	0.75
FORT.L	Forterra PLC	0.29	1.14	0.91
IBST.L	Ibstock PLC	0.27	1.26	1.02
LBT.WA	Libet SA	0.15	0.45	0.41
MATHIO.AT	Mathios Refractory SA	1.68	0.64	0.26
MEG.WA	Megaron SA	0.17	1.16	1.01
NUHCM.IS	Nuh Cimento Sanayi AS	0.05	0.7	0.67
RCA.WA	Rocca SA	0.02	0.33	0.32

	Low	High

Unlevered beta	0.62	0.81
Relevered beta	0.45	0.76
Adjusted relevered beta	0.63	0.84

OYAKC.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 OYAKC.IS:

cost_of_equity (29.70%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.63) + 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.