SARKY.IS WACC - Weighted Average Cost of Capital

The WACC of Sarkuysan Elektrolitik Bakir Sanayi ve Ticaret AS (SARKY.IS) is 27.5%.

The Cost of Equity of Sarkuysan Elektrolitik Bakir Sanayi ve Ticaret AS (SARKY.IS) is 34.20%.

The Cost of Debt of Sarkuysan Elektrolitik Bakir Sanayi ve Ticaret AS (SARKY.IS) is 14.60%.

	Range	Selected
Cost of equity	32.50% - 35.90%	34.20%
Tax rate	22.20% - 22.90%	22.55%
Cost of debt	6.50% - 22.70%	14.60%
WACC	24.5% - 30.6%	27.5%

WACC

SARKY.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.1	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	32.50%	35.90%

Tax rate	22.20%	22.90%
Debt/Equity ratio	0.41	0.41
Cost of debt	6.50%	22.70%

After-tax WACC	24.5%	30.6%


Selected WACC	27.5%

SARKY.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 SARKY.IS:

cost_of_equity (34.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.1) + 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.