The WACC of Yaprak Sut ve Besi Ciftlikleri Sanayi ve Ticaret AS (YAPRK.IS) is 26.7%.
Range | Selected | |
Cost of equity | 25.90% - 28.50% | 27.20% |
Tax rate | 27.30% - 28.80% | 28.05% |
Cost of debt | 7.90% - 22.70% | 15.30% |
WACC | 25.3% - 28.2% | 26.7% |
Category | Low | High |
Long-term bond rate | 21.4% | 21.9% |
Equity market risk premium | 10.2% | 11.2% |
Adjusted beta | 0.44 | 0.55 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 25.90% | 28.50% |
Tax rate | 27.30% | 28.80% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 7.90% | 22.70% |
After-tax WACC | 25.3% | 28.2% |
Selected WACC | 26.7% | |
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 YAPRK.IS:
cost_of_equity (27.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.44) + 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.