CCOLA.IS WACC - Weighted Average Cost of Capital

The WACC of Coca-Cola Icecek AS (CCOLA.IS) is 25.0%.

The Cost of Equity of Coca-Cola Icecek AS (CCOLA.IS) is 28.40%.

The Cost of Debt of Coca-Cola Icecek AS (CCOLA.IS) is 14.20%.

	Range	Selected
Cost of equity	27.00% - 29.80%	28.40%
Tax rate	30.00% - 34.10%	32.05%
Cost of debt	5.90% - 22.50%	14.20%
WACC	22.9% - 27.1%	25.0%

WACC

CCOLA.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.55	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.00%	29.80%

Tax rate	30.00%	34.10%
Debt/Equity ratio	0.22	0.22
Cost of debt	5.90%	22.50%

After-tax WACC	22.9%	27.1%


Selected WACC	25.0%

CCOLA.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 CCOLA.IS:

cost_of_equity (28.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.55) + 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.