The WACC of Hedef Girisim Sermayesi Yatirim Ortakligi AS (HDFGS.IS) is 30.4%.
| Range | Selected | |
| Cost of equity | 28.50% - 32.30% | 30.40% |
| Tax rate | 21.20% - 22.00% | 21.60% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| 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 | 28.50% | 32.30% |
| Tax rate | 21.20% | 22.00% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 28.4% | 32.3% |
| Selected WACC | 30.4% | |
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.