HURGZ.IS WACC - Weighted Average Cost of Capital

The WACC of Hurriyet Gazetecilik ve Matbaacilik AS (HURGZ.IS) is 27.6%.

The Cost of Equity of Hurriyet Gazetecilik ve Matbaacilik AS (HURGZ.IS) is 27.70%.

The Cost of Debt of Hurriyet Gazetecilik ve Matbaacilik AS (HURGZ.IS) is 23.90%.

	Range	Selected
Cost of equity	26.10% - 29.30%	27.70%
Tax rate	4.50% - 5.70%	5.10%
Cost of debt	7.00% - 40.80%	23.90%
WACC	25.7% - 29.5%	27.6%

WACC

HURGZ.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.47	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.10%	29.30%

Tax rate	4.50%	5.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.00%	40.80%

After-tax WACC	25.7%	29.5%


Selected WACC	27.6%

HURGZ.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 HURGZ.IS:

cost_of_equity (27.70%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.47) + 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.