SNKRN.IS
Senkron Guvenlik ve Iletisim Sistemleri AS
Price:  
23.40 
TRY
Volume:  
20,896.00
Turkey | Commercial Services & Supplies
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SNKRN.IS WACC - Weighted Average Cost of Capital

The WACC of Senkron Guvenlik ve Iletisim Sistemleri AS (SNKRN.IS) is 25.8%.

The Cost of Equity of Senkron Guvenlik ve Iletisim Sistemleri AS (SNKRN.IS) is 26.45%.
The Cost of Debt of Senkron Guvenlik ve Iletisim Sistemleri AS (SNKRN.IS) is 5.00%.

Range Selected
Cost of equity 25.40% - 27.50% 26.45%
Tax rate 20.10% - 35.90% 28.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 24.8% - 26.7% 25.8%
WACC

SNKRN.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.4 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 25.40% 27.50%
Tax rate 20.10% 35.90%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 24.8% 26.7%
Selected WACC 25.8%

SNKRN.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 SNKRN.IS:

cost_of_equity (26.45%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.4) + 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.