The WACC of Ihlas Yayin Holding AS (IHYAY.IS) is 28.3%.
Range | Selected | |
Cost of equity | 28.10% - 31.80% | 29.95% |
Tax rate | 24.20% - 35.70% | 29.95% |
Cost of debt | 26.40% - 27.30% | 26.85% |
WACC | 26.9% - 29.7% | 28.3% |
Category | Low | High |
Long-term bond rate | 21.4% | 21.9% |
Equity market risk premium | 10.2% | 11.2% |
Adjusted beta | 0.66 | 0.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 28.10% | 31.80% |
Tax rate | 24.20% | 35.70% |
Debt/Equity ratio | 0.17 | 0.17 |
Cost of debt | 26.40% | 27.30% |
After-tax WACC | 26.9% | 29.7% |
Selected WACC | 28.3% | |
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 IHYAY.IS:
cost_of_equity (29.95%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.66) + 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.