GUBRF.IS WACC - Weighted Average Cost of Capital

The WACC of Gubre Fabrikalari TAS (GUBRF.IS) is 27.8%.

The Cost of Equity of Gubre Fabrikalari TAS (GUBRF.IS) is 29.15%.

The Cost of Debt of Gubre Fabrikalari TAS (GUBRF.IS) is 16.65%.

	Range	Selected
Cost of equity	27.40% - 30.90%	29.15%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	10.60% - 22.70%	16.65%
WACC	25.9% - 29.8%	27.8%

WACC

GUBRF.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.6	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.40%	30.90%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.09	0.09
Cost of debt	10.60%	22.70%

After-tax WACC	25.9%	29.8%


Selected WACC	27.8%

GUBRF.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 GUBRF.IS:

cost_of_equity (29.15%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.6) + 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.