ECILC.IS WACC - Weighted Average Cost of Capital

The WACC of EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS (ECILC.IS) is 28.6%.

The Cost of Equity of EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS (ECILC.IS) is 28.70%.

The Cost of Debt of EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS (ECILC.IS) is 31.45%.

	Range	Selected
Cost of equity	26.40% - 31.00%	28.70%
Tax rate	16.20% - 16.50%	16.35%
Cost of debt	22.70% - 40.20%	31.45%
WACC	26.2% - 31.1%	28.6%

WACC

ECILC.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.5	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.40%	31.00%

Tax rate	16.20%	16.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	22.70%	40.20%

After-tax WACC	26.2%	31.1%


Selected WACC	28.6%

ECILC.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 ECILC.IS:

cost_of_equity (28.70%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.5) + 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.