HUBVC.IS
Hub Girisim Sermayesi Yatirim Ortakligi AS
Price:  
9.18 
TRY
Volume:  
338,802.00
Turkey | Capital Markets
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HUBVC.IS WACC - Weighted Average Cost of Capital

The WACC of Hub Girisim Sermayesi Yatirim Ortakligi AS (HUBVC.IS) is 29.9%.

The Cost of Equity of Hub Girisim Sermayesi Yatirim Ortakligi AS (HUBVC.IS) is 29.90%.
The Cost of Debt of Hub Girisim Sermayesi Yatirim Ortakligi AS (HUBVC.IS) is 5.00%.

Range Selected
Cost of equity 28.70% - 31.10% 29.90%
Tax rate 21.20% - 22.00% 21.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 28.7% - 31.1% 29.9%
WACC

HUBVC.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.72 0.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 28.70% 31.10%
Tax rate 21.20% 22.00%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 28.7% 31.1%
Selected WACC 29.9%

HUBVC.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 HUBVC.IS:

cost_of_equity (29.90%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.72) + 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.