VAKKO.IS WACC - Weighted Average Cost of Capital

The WACC of Vakko Tekstil ve Hazir Giyim Sanayi Isletmeleri AS (VAKKO.IS) is 27.3%.

The Cost of Equity of Vakko Tekstil ve Hazir Giyim Sanayi Isletmeleri AS (VAKKO.IS) is 29.40%.

The Cost of Debt of Vakko Tekstil ve Hazir Giyim Sanayi Isletmeleri AS (VAKKO.IS) is 25.40%.

	Range	Selected
Cost of equity	27.90% - 30.90%	29.40%
Tax rate	19.00% - 19.30%	19.15%
Cost of debt	19.50% - 31.30%	25.40%
WACC	25.0% - 29.6%	27.3%

WACC

VAKKO.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.64	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.90%	30.90%

Tax rate	19.00%	19.30%
Debt/Equity ratio	0.31	0.31
Cost of debt	19.50%	31.30%

After-tax WACC	25.0%	29.6%


Selected WACC	27.3%

VAKKO.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 VAKKO.IS:

cost_of_equity (29.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.64) + 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.