BRMEN.IS WACC - Weighted Average Cost of Capital

The WACC of Birlik Mensucat Ticaret ve Sanayi Isletmesi AS (BRMEN.IS) is 29.2%.

The Cost of Equity of Birlik Mensucat Ticaret ve Sanayi Isletmesi AS (BRMEN.IS) is 27.30%.

The Cost of Debt of Birlik Mensucat Ticaret ve Sanayi Isletmesi AS (BRMEN.IS) is 408.30%.

	Range	Selected
Cost of equity	25.80% - 28.80%	27.30%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	7.00% - 809.60%	408.30%
WACC	25.7% - 32.8%	29.2%

WACC

BRMEN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.43	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.80%	28.80%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.00%	809.60%

After-tax WACC	25.7%	32.8%


Selected WACC	29.2%

BRMEN.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 BRMEN.IS:

cost_of_equity (27.30%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.43) + 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.