BRSAN.IS WACC - Weighted Average Cost of Capital
The WACC of Borusan Mannesmann Boru Sanayi ve Ticaret AS (BRSAN.IS) is 23.3%.
| Range | Selected | |
| Cost of equity | 26.8% - 29.9% | 28.35% |
| Tax rate | 16.4% - 22.6% | 19.5% |
| Cost of debt | 10.4% - 31.3% | 20.85% |
| WACC | 19.0% - 27.5% | 23.3% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.53 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.8% | 29.9% |
| Tax rate | 16.4% | 22.6% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 10.4% | 31.3% |
| After-tax WACC | 19.0% | 27.5% |
| Selected WACC | 23.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BRSAN.IS | Borusan Mannesmann Boru Sanayi ve Ticaret AS | 0.75 | 1.59 | 0.99 |
| COG.WA | Cognor Holding SA | 0.65 | 1.01 | 0.66 |
| FER.WA | Ferrum SA | 1.03 | 0.05 | 0.03 |
| IZMDC.IS | Izmir Demir Celik Sanayi AS | 0.94 | 0.62 | 0.35 |
| IZS.WA | Izostal SA | 2.71 | 0.36 | 0.11 |
| LEBEK.AT | N Leventeris SA | 0.92 | 0.44 | 0.25 |
| MPITR.AT | Bitros Holding SA | 23.14 | -0.35 | -0.02 |
| PROFK.AT | Pipe Works L Girakian Profil SA | 3.94 | 1.13 | 0.27 |
| SIDMA.AT | SidMa Steel Products SA | 4.35 | 0.63 | 0.14 |
| TUB.MC | Tubacex SA | 1.04 | 1.32 | 0.72 |
| Low | High | |
| Unlevered beta | 0.21 | 0.3 |
| Relevered beta | 0.3 | 0.52 |
| Adjusted relevered beta | 0.53 | 0.68 |
BRSAN.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 BRSAN.IS:
cost_of_equity (28.35%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.53) + 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.