CIMSA.IS WACC - Weighted Average Cost of Capital

The WACC of Cimsa Cimento Sanayi ve Ticaret AS (CIMSA.IS) is 25.7%.

The Cost of Equity of Cimsa Cimento Sanayi ve Ticaret AS (CIMSA.IS) is 31.60%.

The Cost of Debt of Cimsa Cimento Sanayi ve Ticaret AS (CIMSA.IS) is 14.90%.

	Range	Selected
Cost of equity	29.50% - 33.70%	31.60%
Tax rate	14.70% - 17.30%	16.00%
Cost of debt	7.10% - 22.70%	14.90%
WACC	22.3% - 29.1%	25.7%

WACC

CIMSA.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.8	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.50%	33.70%

Tax rate	14.70%	17.30%
Debt/Equity ratio	0.44	0.44
Cost of debt	7.10%	22.70%

After-tax WACC	22.3%	29.1%


Selected WACC	25.7%

CIMSA.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 CIMSA.IS:

cost_of_equity (31.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.8) + 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.