What is Karsan Otomotivnayii Ve Ticaret AS WACC %?
Karsan Otomotivnayii Ve Ticaret ASKRSOF 61 WACC % is 10.67% as of Jul. 08, 2026, which is 51% above its 10-year median of 7.06. GuruFocus rates KRSOF with a GF Score™ of 61/100 and a GF Value™ of $0.34. The stock has 7 warning signs investors should review. Among 213 Farm & Heavy Construction Machinery companies, Karsan Otomotivnayii Ve Ticaret AS ranks worse than 80.75% on this metric.
As of today (2026-07-08), Karsan Otomotivnayii Ve Ticaret AS's weighted average cost of capital is 10.67%%. Karsan Otomotivnayii Ve Ticaret AS's ROIC % is 7.66% (calculated using TTM income statement data).
Karsan Otomotivnayii Ve Ticaret AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Karsan Otomotivnayii Ve Ticaret AS (OTCPK:KRSOF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Karsan Otomotivnayii Ve Ticaret AS's weighted average cost of capital is 10.67%%. Karsan Otomotivnayii Ve Ticaret AS's ROIC % is 7.66% (calculated using TTM income statement data).
Karsan Otomotivnayii Ve Ticaret AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Karsan Otomotivnayii Ve Ticaret AS WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Farm & Heavy Construction Machinery subindustry, Karsan Otomotivnayii Ve Ticaret AS's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karsan Otomotivnayii Ve Ticaret AS WACC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Karsan Otomotivnayii Ve Ticaret AS's WACC % distribution charts can be found below:
* The bar in red indicates where Karsan Otomotivnayii Ve Ticaret AS's WACC % falls into.
Karsan Otomotivnayii Ve Ticaret AS WACC % Calculation
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Karsan Otomotivnayii Ve Ticaret AS's market capitalization (E) is $242.228 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Karsan Otomotivnayii Ve Ticaret AS's latest one-year quarterly average Book Value of Debt (D) is $201.0652 Mil.
a) weight of equity = E / (E + D) = 242.228 / (242.228 + 201.0652) = 0.5464
b) weight of debt = D / (E + D) = 201.0652 / (242.228 + 201.0652) = 0.4536
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.573%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Karsan Otomotivnayii Ve Ticaret AS's beta is 0.4324.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.573% + 0.4324 * 6% = 7.1674%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Karsan Otomotivnayii Ve Ticaret AS's interest expense (positive number) was $61.516 Mil. Its total Book Value of Debt (D) is $201.0652 Mil.
Cost of Debt = 61.516 / 201.0652 = 30.5951%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 15.699 / 30.566 = 51.36%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Karsan Otomotivnayii Ve Ticaret AS (KRSOF) has a WACC % of 10.67% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Karsan Otomotivnayii Ve Ticaret AS and its competitors. This is 51% above median its historical median of 7.06. Over the past decade, Karsan Otomotivnayii Ve Ticaret AS's WACC % has ranged from 5.41 to 15.45. According to the industry distribution chart, Karsan Otomotivnayii Ve Ticaret AS ranks #172 out of 213 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 80.8%.
Is Karsan Otomotivnayii Ve Ticaret AS's WACC % too high?
Karsan Otomotivnayii Ve Ticaret AS's current WACC % of 10.67% is 51% above median its 10-year median of 7.06. Over the past 10 years, this metric has ranged from a low of 5.41 to a high of 15.45. The Farm & Heavy Construction Machinery industry median WACC % is 9.36. Karsan Otomotivnayii Ve Ticaret AS's value of 10.67% is 14% above this industry median. Based on the distribution chart, Karsan Otomotivnayii Ve Ticaret AS ranks #172 out of 213 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Karsan Otomotivnayii Ve Ticaret AS has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Karsan Otomotivnayii Ve Ticaret AS's WACC % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Karsan Otomotivnayii Ve Ticaret AS ranks #172 out of 213 companies for WACC %. This places Karsan Otomotivnayii Ve Ticaret AS in the lower half of its industry. The industry median WACC % is 9.36. Karsan Otomotivnayii Ve Ticaret AS's value of 10.67% is 14% above this benchmark. Historically, Karsan Otomotivnayii Ve Ticaret AS's own WACC % has ranged from 5.41 to 15.45 over the past decade. While the company's 10-year median is 7.06 vs. the industry median of 9.36, Karsan Otomotivnayii Ve Ticaret AS has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Farm & Heavy Construction Machinery company?
The median WACC % among Farm & Heavy Construction Machinery companies is 9.36, based on 213 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karsan Otomotivnayii Ve Ticaret AS's current WACC % of 10.67% is 14% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Karsan Otomotivnayii Ve Ticaret AS and its competitors. For the Farm & Heavy Construction Machinery industry, the median WACC % is 9.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karsan Otomotivnayii Ve Ticaret AS's current WACC % is 10.67%, which is 51% above median its own 10-year median of 7.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karsan Otomotivnayii Ve Ticaret AS stock overvalued right now?
Karsan Otomotivnayii Ve Ticaret AS (KRSOF) has a current WACC % of 10.67%. The stock's GF Value™ is $0.34, compared to a current price of $0.22 — trading 36.2% below its estimated fair value. The current WACC % is 10.67%, which is 51% above median its 10-year median of 7.06 and 14% above the Farm & Heavy Construction Machinery industry median of 9.36. Karsan Otomotivnayii Ve Ticaret AS's overall GF Score™ is 61/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Karsan Otomotivnayii Ve Ticaret AS (KRSOF), the current WACC % is 10.67% as of Jul. 08, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karsan Otomotivnayii Ve Ticaret AS (KRSOF) Overvalued in 2026?
Based on GuruFocus' analysis, Karsan Otomotivnayii Ve Ticaret AS stock appears to be undervalued.
The current stock price of $0.22 is trading 36.2% below its estimated GF Value™ of $0.34.
Key valuation signals for KRSOF:
WACC %: 10.67% (51% above median its 10-year median of 7.06)
GF Value™: $0.34 vs. price of $0.22 (36.2% below fair value)
Industry Position: 14% above the Farm & Heavy Construction Machinery median (#172 of 213)
No single metric tells the full story. See the KRSOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karsan Otomotivnayii Ve Ticaret AS Business Description
Karsan Otomotiv Sanayii Ve Ticaret AS is engaged in production, import and export of motor vehicles to automotive brands. It provides industrial services to automotive companies and its activities include the production of spare parts for automotive and other vehicles. The operating segments are Bus segment reports production of buses for municipalities, Karsan segment reports the production of commercial vehicles with its own brand, Spare Parts segment represents the production of spare parts and Industrial Sales segment reports the cataphoresis processes and tractor cabin. The group operates in Turkey and internationally and generates the majority of the revenue from the Hyundai segment.
61GF Score
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