VESBE.IS WACC - Weighted Average Cost of Capital

The WACC of Vestel Beyaz Esya Sanayi ve Ticaret AS (VESBE.IS) is 27.8%.

The Cost of Equity of Vestel Beyaz Esya Sanayi ve Ticaret AS (VESBE.IS) is 29.65%.

The Cost of Debt of Vestel Beyaz Esya Sanayi ve Ticaret AS (VESBE.IS) is 16.95%.

	Range	Selected
Cost of equity	28.30% - 31.00%	29.65%
Tax rate	0.40% - 1.10%	0.75%
Cost of debt	11.70% - 22.20%	16.95%
WACC	26.0% - 29.7%	27.8%

WACC

VESBE.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.68	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.30%	31.00%

Tax rate	0.40%	1.10%
Debt/Equity ratio	0.16	0.16
Cost of debt	11.70%	22.20%

After-tax WACC	26.0%	29.7%


Selected WACC	27.8%

VESBE.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 VESBE.IS:

cost_of_equity (29.65%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.68) + 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.