INTEM.IS WACC - Weighted Average Cost of Capital

The WACC of Intema Insaat ve Tesisat Malzemeleri Yatirim ve Pazarlama AS (INTEM.IS) is 26.4%.

The Cost of Equity of Intema Insaat ve Tesisat Malzemeleri Yatirim ve Pazarlama AS (INTEM.IS) is 27.20%.

The Cost of Debt of Intema Insaat ve Tesisat Malzemeleri Yatirim ve Pazarlama AS (INTEM.IS) is 5.00%.

	Range	Selected
Cost of equity	25.80% - 28.60%	27.20%
Tax rate	8.50% - 34.80%	21.65%
Cost of debt	5.00% - 5.00%	5.00%
WACC	25.1% - 27.7%	26.4%

WACC

INTEM.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.44	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.80%	28.60%

Tax rate	8.50%	34.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	5.00%	5.00%

After-tax WACC	25.1%	27.7%


Selected WACC	26.4%

INTEM.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 INTEM.IS:

cost_of_equity (27.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.44) + 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.