VKFYO.IS WACC - Weighted Average Cost of Capital
The WACC of Vakif Menkul Kiymet Yatirim Ortakligi AS (VKFYO.IS) is 27.8%.
| Range | Selected | |
| Cost of equity | 26.3% - 29.3% | 27.8% |
| Tax rate | 21.2% - 22.0% | 21.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 26.3% - 29.3% | 27.8% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.49 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.3% | 29.3% |
| Tax rate | 21.2% | 22.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 26.3% | 29.3% |
| Selected WACC | 27.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VKFYO.IS | Vakif Menkul Kiymet Yatirim Ortakligi AS | 0 | 0.34 | 0.34 |
| AMB.MI | Ambromobiliare SpA | 0.25 | 0.09 | 0.08 |
| APQ.L | APQ Global Ltd | 27.97 | 1.48 | 0.06 |
| ATRUST.AT | Alpha Trust Mutual Fund and Alternative Investment Fund Management SA | 0.05 | -0.14 | -0.14 |
| COP.MI | Copernico SIM SpA | 0.02 | 0.64 | 0.63 |
| DM.MI | Digital Magics SpA | 0.14 | 0.2 | 0.18 |
| EFF.DE | Deutsche Effecten und Wechsel Beteiligungsgesellschaft AG | 0.6 | 0 | 0 |
| FLEXD.LS | Flexdeal SIMFE SA | 0.08 | -0.09 | -0.08 |
| LVEN.MI | LVenture Group SpA | 0.37 | 0.15 | 0.12 |
| SCM.MI | Solutions Capital Management SIM SpA | 0.23 | 0.36 | 0.3 |
| Low | High | |
| Unlevered beta | 0.07 | 0.14 |
| Relevered beta | 0.24 | 0.43 |
| Adjusted relevered beta | 0.49 | 0.62 |
VKFYO.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 VKFYO.IS:
cost_of_equity (27.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.49) + 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.