MEPET.IS WACC - Weighted Average Cost of Capital

The WACC of Mepet Metro Petrol ve Tesisleri Sanayi Ticaret AS (MEPET.IS) is 29.8%.

The Cost of Equity of Mepet Metro Petrol ve Tesisleri Sanayi Ticaret AS (MEPET.IS) is 31.20%.

The Cost of Debt of Mepet Metro Petrol ve Tesisleri Sanayi Ticaret AS (MEPET.IS) is 34.40%.

	Range	Selected
Cost of equity	28.80% - 33.60%	31.20%
Tax rate	21.60% - 27.60%	24.60%
Cost of debt	34.40% - 34.40%	34.40%
WACC	28.3% - 31.4%	29.8%

WACC

MEPET.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.73	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.80%	33.60%

Tax rate	21.60%	27.60%
Debt/Equity ratio	0.35	0.35
Cost of debt	34.40%	34.40%

After-tax WACC	28.3%	31.4%


Selected WACC	29.8%

MEPET.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 MEPET.IS:

cost_of_equity (31.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.73) + 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.