The WACC of Yapi Kredi Koray Gayrimenkul Yatirim Ortakligi AS (YKGYO.IS) is 16.3%.
| Range | Selected | |
| Cost of equity | 26.30% - 30.10% | 28.20% |
| Tax rate | 12.40% - 15.30% | 13.85% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 15.3% - 17.2% | 16.3% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.48 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.30% | 30.10% |
| Tax rate | 12.40% | 15.30% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 15.3% | 17.2% |
| Selected WACC | 16.3% | |
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 YKGYO.IS:
cost_of_equity (28.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.48) + 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.