SMART.IS WACC - Weighted Average Cost of Capital

The WACC of Smartiks Yazilim AS (SMART.IS) is 29.1%.

The Cost of Equity of Smartiks Yazilim AS (SMART.IS) is 29.40%.

The Cost of Debt of Smartiks Yazilim AS (SMART.IS) is 25.15%.

	Range	Selected
Cost of equity	27.40% - 31.40%	29.40%
Tax rate	11.70% - 12.50%	12.10%
Cost of debt	24.10% - 26.20%	25.15%
WACC	27.2% - 31.0%	29.1%

WACC

SMART.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.6	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.40%	31.40%

Tax rate	11.70%	12.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	24.10%	26.20%

After-tax WACC	27.2%	31.0%


Selected WACC	29.1%

SMART.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 SMART.IS:

cost_of_equity (29.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.6) + 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.