METUR.IS
Metemtur Otelcilik ve Turizm Isletmeleri AS
Price:  
3.86 
TRY
Volume:  
1,282,170.00
Turkey | Hotels, Restaurants & Leisure
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METUR.IS WACC - Weighted Average Cost of Capital

The WACC of Metemtur Otelcilik ve Turizm Isletmeleri AS (METUR.IS) is 25.9%.

The Cost of Equity of Metemtur Otelcilik ve Turizm Isletmeleri AS (METUR.IS) is 28.20%.
The Cost of Debt of Metemtur Otelcilik ve Turizm Isletmeleri AS (METUR.IS) is 7.00%.

Range Selected
Cost of equity 26.20% - 30.20% 28.20%
Tax rate 21.20% - 22.00% 21.60%
Cost of debt 7.00% - 7.00% 7.00%
WACC 24.1% - 27.6% 25.9%
WACC

METUR.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.48 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 26.20% 30.20%
Tax rate 21.20% 22.00%
Debt/Equity ratio 0.11 0.11
Cost of debt 7.00% 7.00%
After-tax WACC 24.1% 27.6%
Selected WACC 25.9%

METUR.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 METUR.IS:

cost_of_equity (28.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.48) + 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.