AVGYO.IS WACC - Weighted Average Cost of Capital

The WACC of Avrasya Gayrimenkul Yatirim Ortakligi AS (AVGYO.IS) is 21.5%.

The Cost of Equity of Avrasya Gayrimenkul Yatirim Ortakligi AS (AVGYO.IS) is 28.35%.

The Cost of Debt of Avrasya Gayrimenkul Yatirim Ortakligi AS (AVGYO.IS) is 18.70%.

	Range	Selected
Cost of equity	26.30% - 30.40%	28.35%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	18.70% - 18.70%	18.70%
WACC	20.5% - 22.5%	21.5%

WACC

AVGYO.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.48	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.30%	30.40%

Tax rate	21.20%	22.00%
Debt/Equity ratio	1	1
Cost of debt	18.70%	18.70%

After-tax WACC	20.5%	22.5%


Selected WACC	21.5%

AVGYO.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 AVGYO.IS:

cost_of_equity (28.35%) = 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.