PRKAB.IS WACC - Weighted Average Cost of Capital

The WACC of Turk Prysmian Kablo ve Sistemleri AS (PRKAB.IS) is 30.8%.

The Cost of Equity of Turk Prysmian Kablo ve Sistemleri AS (PRKAB.IS) is 31.10%.

The Cost of Debt of Turk Prysmian Kablo ve Sistemleri AS (PRKAB.IS) is 22.50%.

	Range	Selected
Cost of equity	29.50% - 32.70%	31.10%
Tax rate	7.40% - 11.60%	9.50%
Cost of debt	22.50% - 22.50%	22.50%
WACC	29.2% - 32.3%	30.8%

WACC

PRKAB.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.8	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.50%	32.70%

Tax rate	7.40%	11.60%
Debt/Equity ratio	0.03	0.03
Cost of debt	22.50%	22.50%

After-tax WACC	29.2%	32.3%


Selected WACC	30.8%

PRKAB.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 PRKAB.IS:

cost_of_equity (31.10%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.8) + 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.