BLCYT.IS WACC - Weighted Average Cost of Capital

The WACC of Bilici Yatirim Sanayi ve Ticaret AS (BLCYT.IS) is 28.8%.

The Cost of Equity of Bilici Yatirim Sanayi ve Ticaret AS (BLCYT.IS) is 29.15%.

The Cost of Debt of Bilici Yatirim Sanayi ve Ticaret AS (BLCYT.IS) is 13.90%.

	Range	Selected
Cost of equity	27.30% - 31.00%	29.15%
Tax rate	12.00% - 16.90%	14.45%
Cost of debt	5.80% - 22.00%	13.90%
WACC	26.9% - 30.8%	28.8%

WACC

BLCYT.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.58	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.30%	31.00%

Tax rate	12.00%	16.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.80%	22.00%

After-tax WACC	26.9%	30.8%


Selected WACC	28.8%

BLCYT.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 BLCYT.IS:

cost_of_equity (29.15%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.58) + 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.