BIZIM.IS WACC - Weighted Average Cost of Capital

The WACC of Bizim Toptan Satis Magazalari AS (BIZIM.IS) is 46.2%.

The Cost of Equity of Bizim Toptan Satis Magazalari AS (BIZIM.IS) is 29.25%.

The Cost of Debt of Bizim Toptan Satis Magazalari AS (BIZIM.IS) is 141.90%.

	Range	Selected
Cost of equity	27.50% - 31.00%	29.25%
Tax rate	21.10% - 21.80%	21.45%
Cost of debt	26.20% - 257.60%	141.90%
WACC	26.1% - 66.2%	46.2%

WACC

BIZIM.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.61	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.50%	31.00%

Tax rate	21.10%	21.80%
Debt/Equity ratio	0.26	0.26
Cost of debt	26.20%	257.60%

After-tax WACC	26.1%	66.2%


Selected WACC	46.2%

BIZIM.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 BIZIM.IS:

cost_of_equity (29.25%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.61) + 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.