IHYAY.IS WACC - Weighted Average Cost of Capital

The WACC of Ihlas Yayin Holding AS (IHYAY.IS) is 28.3%.

The Cost of Equity of Ihlas Yayin Holding AS (IHYAY.IS) is 29.95%.

The Cost of Debt of Ihlas Yayin Holding AS (IHYAY.IS) is 26.85%.

	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%

WACC

IHYAY.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.66	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%

IHYAY.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 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.