FADE.IS WACC - Weighted Average Cost of Capital

The WACC of Fade Gida Yatirim Sanayi Ticaret AS (FADE.IS) is 30.8%.

The Cost of Equity of Fade Gida Yatirim Sanayi Ticaret AS (FADE.IS) is 31.60%.

The Cost of Debt of Fade Gida Yatirim Sanayi Ticaret AS (FADE.IS) is 15.90%.

	Range	Selected
Cost of equity	29.60% - 33.60%	31.60%
Tax rate	20.90% - 21.70%	21.30%
Cost of debt	9.30% - 22.50%	15.90%
WACC	28.6% - 32.9%	30.8%

WACC

FADE.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.81	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.60%	33.60%

Tax rate	20.90%	21.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	9.30%	22.50%

After-tax WACC	28.6%	32.9%


Selected WACC	30.8%

FADE.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 FADE.IS:

cost_of_equity (31.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.81) + 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.