OZRDN.IS WACC - Weighted Average Cost of Capital

The WACC of Ozerden Plastik Sanayi ve Ticaret AS (OZRDN.IS) is 24.9%.

The Cost of Equity of Ozerden Plastik Sanayi ve Ticaret AS (OZRDN.IS) is 29.60%.

The Cost of Debt of Ozerden Plastik Sanayi ve Ticaret AS (OZRDN.IS) is 12.15%.

	Range	Selected
Cost of equity	27.90% - 31.30%	29.60%
Tax rate	21.10% - 21.30%	21.20%
Cost of debt	7.00% - 17.30%	12.15%
WACC	22.6% - 27.1%	24.9%

WACC

OZRDN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.64	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.90%	31.30%

Tax rate	21.10%	21.30%
Debt/Equity ratio	0.31	0.31
Cost of debt	7.00%	17.30%

After-tax WACC	22.6%	27.1%


Selected WACC	24.9%

OZRDN.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 OZRDN.IS:

cost_of_equity (29.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.64) + 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.