EGEEN.IS WACC - Weighted Average Cost of Capital

The WACC of Ege Endustri ve Ticaret AS (EGEEN.IS) is 29.4%.

The Cost of Equity of Ege Endustri ve Ticaret AS (EGEEN.IS) is 29.80%.

The Cost of Debt of Ege Endustri ve Ticaret AS (EGEEN.IS) is 15.60%.

	Range	Selected
Cost of equity	28.10% - 31.50%	29.80%
Tax rate	10.30% - 11.00%	10.65%
Cost of debt	9.20% - 22.00%	15.60%
WACC	27.6% - 31.1%	29.4%

WACC

EGEEN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.66	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.10%	31.50%

Tax rate	10.30%	11.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	9.20%	22.00%

After-tax WACC	27.6%	31.1%


Selected WACC	29.4%

EGEEN.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 EGEEN.IS:

cost_of_equity (29.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.66) + 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.