IZMDC.IS WACC - Weighted Average Cost of Capital

The WACC of Izmir Demir Celik Sanayi AS (IZMDC.IS) is 26.8%.

The Cost of Equity of Izmir Demir Celik Sanayi AS (IZMDC.IS) is 37.05%.

The Cost of Debt of Izmir Demir Celik Sanayi AS (IZMDC.IS) is 18.30%.

	Range	Selected
Cost of equity	34.00% - 40.10%	37.05%
Tax rate	11.40% - 13.80%	12.60%
Cost of debt	9.30% - 27.30%	18.30%
WACC	21.5% - 32.0%	26.8%

WACC

IZMDC.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.24	1.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	34.00%	40.10%

Tax rate	11.40%	13.80%
Debt/Equity ratio	0.94	0.94
Cost of debt	9.30%	27.30%

After-tax WACC	21.5%	32.0%


Selected WACC	26.8%

IZMDC.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 IZMDC.IS:

cost_of_equity (37.05%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.24) + 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.