HDFGS.IS WACC - Weighted Average Cost of Capital
The WACC of Hedef Girisim Sermayesi Yatirim Ortakligi AS (HDFGS.IS) is 30.4%.
| Range | Selected | |
| Cost of equity | 28.5% - 32.3% | 30.4% |
| Tax rate | 21.2% - 22.0% | 21.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 28.4% - 32.3% | 30.4% |
| Category | Low | High |
| Long-term bond rate | 21.4% | 21.9% |
| Equity market risk premium | 10.2% | 11.2% |
| Adjusted beta | 0.7 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 28.5% | 32.3% |
| Tax rate | 21.2% | 22.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 28.4% | 32.3% |
| Selected WACC | 30.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HDFGS.IS | Hedef Girisim Sermayesi Yatirim Ortakligi AS | 0 | 0.96 | 0.96 |
| BFE.MI | Banca Finnat Euramerica SpA | 7.43 | 0.58 | 0.09 |
| BPM.L | B.P. Marsh & Partners PLC | 0 | 0.41 | 0.41 |
| DZGYO.IS | Deniz Gayrimenkul Yatirim Ortakligi AS | 0.16 | 0.98 | 0.88 |
| KWG.L | Kingswood Holdings Ltd | 1.48 | -0.02 | -0.01 |
| REC.L | Record PLC | 0 | 0.24 | 0.24 |
| SKH.WA | Skarbiec Holding SA | 0.01 | 0.3 | 0.3 |
| TAVI.L | Tavistock Investments PLC | 0.18 | 0.44 | 0.38 |
| TITAN.HE | Titanium Oyj | 0.02 | 0.76 | 0.75 |
| WHI.L | WH Ireland Group PLC | 0.04 | 0.33 | 0.32 |
| Low | High | |
| Unlevered beta | 0.31 | 0.39 |
| Relevered beta | 0.55 | 0.84 |
| Adjusted relevered beta | 0.7 | 0.89 |
HDFGS.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 HDFGS.IS:
cost_of_equity (30.40%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.7) + 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.