HLGYO.IS WACC - Weighted Average Cost of Capital

The WACC of Halk Gayrimenkul Yatirim Ortakligi AS (HLGYO.IS) is 25.3%.

The Cost of Equity of Halk Gayrimenkul Yatirim Ortakligi AS (HLGYO.IS) is 26.85%.

The Cost of Debt of Halk Gayrimenkul Yatirim Ortakligi AS (HLGYO.IS) is 22.80%.

	Range	Selected
Cost of equity	25.90% - 27.80%	26.85%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	14.80% - 30.80%	22.80%
WACC	23.4% - 27.1%	25.3%

WACC

HLGYO.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.45	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.90%	27.80%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.21	0.21
Cost of debt	14.80%	30.80%

After-tax WACC	23.4%	27.1%


Selected WACC	25.3%

HLGYO.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 HLGYO.IS:

cost_of_equity (26.85%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.45) + 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.