TEKTU.IS WACC - Weighted Average Cost of Capital

The WACC of Tek Art Insaat Ticaret Turizm Sanayi Ve Yatirimlar AS (TEKTU.IS) is 22.2%.

The Cost of Equity of Tek Art Insaat Ticaret Turizm Sanayi Ve Yatirimlar AS (TEKTU.IS) is 29.05%.

The Cost of Debt of Tek Art Insaat Ticaret Turizm Sanayi Ve Yatirimlar AS (TEKTU.IS) is 10.35%.

	Range	Selected
Cost of equity	26.60% - 31.50%	29.05%
Tax rate	5.30% - 12.60%	8.95%
Cost of debt	7.00% - 13.70%	10.35%
WACC	19.6% - 24.7%	22.2%

WACC

TEKTU.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.51	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.60%	31.50%

Tax rate	5.30%	12.60%
Debt/Equity ratio	0.53	0.53
Cost of debt	7.00%	13.70%

After-tax WACC	19.6%	24.7%


Selected WACC	22.2%

TEKTU.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 TEKTU.IS:

cost_of_equity (29.05%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.51) + 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.