MAVI.IS WACC - Weighted Average Cost of Capital

The WACC of Mavi Giyim Sanayi ve Ticaret AS (MAVI.IS) is 25.7%.

The Cost of Equity of Mavi Giyim Sanayi ve Ticaret AS (MAVI.IS) is 31.55%.

The Cost of Debt of Mavi Giyim Sanayi ve Ticaret AS (MAVI.IS) is 20.15%.

	Range	Selected
Cost of equity	28.70% - 34.40%	31.55%
Tax rate	22.90% - 24.00%	23.45%
Cost of debt	13.00% - 27.30%	20.15%
WACC	21.9% - 29.5%	25.7%

WACC

MAVI.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.72	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.70%	34.40%

Tax rate	22.90%	24.00%
Debt/Equity ratio	0.56	0.56
Cost of debt	13.00%	27.30%

After-tax WACC	21.9%	29.5%


Selected WACC	25.7%

MAVI.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 MAVI.IS:

cost_of_equity (31.55%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.72) + 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.