IHLGM.IS WACC - Weighted Average Cost of Capital

The WACC of Ihlas Gayrimenkul Proje Gelistirme ve Ticaret AS (IHLGM.IS) is 27.3%.

The Cost of Equity of Ihlas Gayrimenkul Proje Gelistirme ve Ticaret AS (IHLGM.IS) is 29.25%.

The Cost of Debt of Ihlas Gayrimenkul Proje Gelistirme ve Ticaret AS (IHLGM.IS) is 7.00%.

	Range	Selected
Cost of equity	27.50% - 31.00%	29.25%
Tax rate	19.50% - 33.50%	26.50%
Cost of debt	7.00% - 7.00%	7.00%
WACC	25.7% - 28.9%	27.3%

WACC

IHLGM.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.6	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.50%	31.00%

Tax rate	19.50%	33.50%
Debt/Equity ratio	0.09	0.09
Cost of debt	7.00%	7.00%

After-tax WACC	25.7%	28.9%


Selected WACC	27.3%

IHLGM.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 IHLGM.IS:

cost_of_equity (29.25%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.6) + 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.