GOLTS.IS WACC - Weighted Average Cost of Capital

The WACC of Goltas Goller Bolgesi Cimento Sanayi ve Ticaret AS (GOLTS.IS) is 23.6%.

The Cost of Equity of Goltas Goller Bolgesi Cimento Sanayi ve Ticaret AS (GOLTS.IS) is 30.90%.

The Cost of Debt of Goltas Goller Bolgesi Cimento Sanayi ve Ticaret AS (GOLTS.IS) is 18.05%.

	Range	Selected
Cost of equity	29.10% - 32.70%	30.90%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	8.80% - 27.30%	18.05%
WACC	19.5% - 27.8%	23.6%

WACC

GOLTS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.76	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	29.10%	32.70%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.76	0.76
Cost of debt	8.80%	27.30%

After-tax WACC	19.5%	27.8%


Selected WACC	23.6%

GOLTS.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 GOLTS.IS:

cost_of_equity (30.90%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.76) + 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.