POLTK.IS WACC - Weighted Average Cost of Capital

The WACC of Politeknik Metal Sanayi ve Ticaret AS (POLTK.IS) is 32.7%.

The Cost of Equity of Politeknik Metal Sanayi ve Ticaret AS (POLTK.IS) is 28.80%.

The Cost of Debt of Politeknik Metal Sanayi ve Ticaret AS (POLTK.IS) is 1,983.05%.

	Range	Selected
Cost of equity	26.70% - 30.90%	28.80%
Tax rate	23.40% - 24.80%	24.10%
Cost of debt	22.00% - 3,944.10%	1,983.05%
WACC	26.7% - 38.6%	32.7%

WACC

POLTK.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.53	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.70%	30.90%

Tax rate	23.40%	24.80%
Debt/Equity ratio	0	0
Cost of debt	22.00%	3,944.10%

After-tax WACC	26.7%	38.6%


Selected WACC	32.7%

POLTK.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 POLTK.IS:

cost_of_equity (28.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.53) + 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.