CRFSA.IS WACC - Weighted Average Cost of Capital

The WACC of CarrefourSA Carrefour Sabanci Ticaret Merkezi AS (CRFSA.IS) is 25.1%.

The Cost of Equity of CarrefourSA Carrefour Sabanci Ticaret Merkezi AS (CRFSA.IS) is 28.00%.

The Cost of Debt of CarrefourSA Carrefour Sabanci Ticaret Merkezi AS (CRFSA.IS) is 22.45%.

	Range	Selected
Cost of equity	26.90% - 29.10%	28.00%
Tax rate	16.70% - 19.60%	18.15%
Cost of debt	10.50% - 34.40%	22.45%
WACC	21.5% - 28.7%	25.1%

WACC

CRFSA.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.54	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.90%	29.10%

Tax rate	16.70%	19.60%
Debt/Equity ratio	0.42	0.42
Cost of debt	10.50%	34.40%

After-tax WACC	21.5%	28.7%


Selected WACC	25.1%

CRFSA.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 CRFSA.IS:

cost_of_equity (28.00%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.54) + 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.