OYAKC.IS WACC - Weighted Average Cost of Capital

The WACC of Oyak Cimento Fabrikalari AS (OYAKC.IS) is 29.0%.

The Cost of Equity of Oyak Cimento Fabrikalari AS (OYAKC.IS) is 29.70%.

The Cost of Debt of Oyak Cimento Fabrikalari AS (OYAKC.IS) is 24.10%.

	Range	Selected
Cost of equity	27.70% - 31.70%	29.70%
Tax rate	12.60% - 15.10%	13.85%
Cost of debt	24.10% - 24.10%	24.10%
WACC	27.2% - 30.8%	29.0%

WACC

OYAKC.IS WACC calculation

Category	Low	High

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

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.70%	31.70%

Tax rate	12.60%	15.10%
Debt/Equity ratio	0.09	0.09
Cost of debt	24.10%	24.10%

After-tax WACC	27.2%	30.8%


Selected WACC	29.0%

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.