The WACC of Fenerbahce Futbol AS (FENER.IS) is 19.7%.
| Range | Selected | |
| Cost of equity | 26.40% - 29.70% | 28.05% |
| Tax rate | 0.60% - 0.80% | 0.70% |
| Cost of debt | 7.00% - 13.00% | 10.00% |
| WACC | 17.5% - 22.0% | 19.7% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.49 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 26.40% | 29.70% |
| Tax rate | 0.60% | 0.80% |
| Debt/Equity ratio | 0.85 | 0.85 |
| Cost of debt | 7.00% | 13.00% |
| After-tax WACC | 17.5% | 22.0% |
| Selected WACC | 19.7% | |
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 FENER.IS:
cost_of_equity (28.05%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.49) + 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.