IHLGM.IS
Ihlas Gayrimenkul Proje Gelistirme ve Ticaret AS
Price:  
0.77 
TRY
Volume:  
10,882,900.00
Turkey | Household Durables
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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.