The WACC of Ditas Dogan Yedek Parca Imalat ve Teknik AS (DITAS.IS) is 27.8%.
| Range | Selected | |
| Cost of equity | 27.00% - 30.70% | 28.85% |
| Tax rate | 6.50% - 18.30% | 12.40% |
| Cost of debt | 6.90% - 22.00% | 14.45% |
| WACC | 25.7% - 29.9% | 27.8% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.56 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 27.00% | 30.70% |
| Tax rate | 6.50% | 18.30% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 6.90% | 22.00% |
| After-tax WACC | 25.7% | 29.9% |
| Selected WACC | 27.8% | |
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 DITAS.IS:
cost_of_equity (28.85%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.56) + 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.