GSRAY.IS
Galatasaray Sportif Sinai ve Ticari Yatirimlar AS
Price:  
3.03 
TRY
Volume:  
3,215,430.00
Turkey | Entertainment
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GSRAY.IS WACC - Weighted Average Cost of Capital

The WACC of Galatasaray Sportif Sinai ve Ticari Yatirimlar AS (GSRAY.IS) is 20.4%.

The Cost of Equity of Galatasaray Sportif Sinai ve Ticari Yatirimlar AS (GSRAY.IS) is 28.05%.
The Cost of Debt of Galatasaray Sportif Sinai ve Ticari Yatirimlar AS (GSRAY.IS) is 12.00%.

Range Selected
Cost of equity 26.40% - 29.70% 28.05%
Tax rate 1.80% - 2.70% 2.25%
Cost of debt 7.00% - 17.00% 12.00%
WACC 17.3% - 23.5% 20.4%
WACC

GSRAY.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.5 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 26.40% 29.70%
Tax rate 1.80% 2.70%
Debt/Equity ratio 0.88 0.88
Cost of debt 7.00% 17.00%
After-tax WACC 17.3% 23.5%
Selected WACC 20.4%

GSRAY.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 GSRAY.IS:

cost_of_equity (28.05%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.5) + 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.