BTCIM.IS WACC - Weighted Average Cost of Capital

The WACC of Baticim Bati Anadolu Cimento Sanayii AS (BTCIM.IS) is 26.3%.

The Cost of Equity of Baticim Bati Anadolu Cimento Sanayii AS (BTCIM.IS) is 32.65%.

The Cost of Debt of Baticim Bati Anadolu Cimento Sanayii AS (BTCIM.IS) is 23.70%.

	Range	Selected
Cost of equity	30.00% - 35.30%	32.65%
Tax rate	18.10% - 30.60%	24.35%
Cost of debt	8.60% - 38.80%	23.70%
WACC	20.7% - 31.9%	26.3%

WACC

BTCIM.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.85	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	30.00%	35.30%

Tax rate	18.10%	30.60%
Debt/Equity ratio	0.68	0.68
Cost of debt	8.60%	38.80%

After-tax WACC	20.7%	31.9%


Selected WACC	26.3%

BTCIM.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 BTCIM.IS:

cost_of_equity (32.65%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.85) + 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.