EPLAS.IS WACC - Weighted Average Cost of Capital

The WACC of Egeplast Ege Plastik Ticaret ve Sanayi AS (EPLAS.IS) is 31.0%.

The Cost of Equity of Egeplast Ege Plastik Ticaret ve Sanayi AS (EPLAS.IS) is 30.65%.

The Cost of Debt of Egeplast Ege Plastik Ticaret ve Sanayi AS (EPLAS.IS) is 68.05%.

	Range	Selected
Cost of equity	27.50% - 33.80%	30.65%
Tax rate	14.00% - 17.30%	15.65%
Cost of debt	22.40% - 113.70%	68.05%
WACC	27.5% - 34.5%	31.0%

WACC

EPLAS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.61	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.50%	33.80%

Tax rate	14.00%	17.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	22.40%	113.70%

After-tax WACC	27.5%	34.5%


Selected WACC	31.0%

EPLAS.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 EPLAS.IS:

cost_of_equity (30.65%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.61) + 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.