SKTAS.IS WACC - Weighted Average Cost of Capital

The WACC of Soktas Tekstil Sanayi ve Ticaret AS (SKTAS.IS) is 24.4%.

The Cost of Equity of Soktas Tekstil Sanayi ve Ticaret AS (SKTAS.IS) is 28.75%.

The Cost of Debt of Soktas Tekstil Sanayi ve Ticaret AS (SKTAS.IS) is 24.40%.

	Range	Selected
Cost of equity	26.50% - 31.00%	28.75%
Tax rate	16.30% - 21.90%	19.10%
Cost of debt	10.00% - 38.80%	24.40%
WACC	18.2% - 30.7%	24.4%

WACC

SKTAS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.5	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.50%	31.00%

Tax rate	16.30%	21.90%
Debt/Equity ratio	0.84	0.84
Cost of debt	10.00%	38.80%

After-tax WACC	18.2%	30.7%


Selected WACC	24.4%

SKTAS.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 SKTAS.IS:

cost_of_equity (28.75%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.5) + 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.