The WACC of Metemtur Otelcilik ve Turizm Isletmeleri AS (METUR.IS) is 25.9%.
Range | Selected | |
Cost of equity | 26.2% - 30.2% | 28.2% |
Tax rate | 21.2% - 22.0% | 21.6% |
Cost of debt | 7.0% - 7.0% | 7% |
WACC | 24.1% - 27.6% | 25.9% |
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 | 26.2% | 30.2% |
Tax rate | 21.2% | 22.0% |
Debt/Equity ratio | 0.11 | 0.11 |
Cost of debt | 7.0% | 7.0% |
After-tax WACC | 24.1% | 27.6% |
Selected WACC | 25.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
METUR.IS | Metemtur Otelcilik ve Turizm Isletmeleri AS | 0.11 | 2.13 | 1.96 |
BSP.OL | Black Sea Property AS | 1.72 | 3.03 | 1.29 |
FLAP.IS | Flap Kongre Toplanti Hizmetleri Otomotiv ve Turizm AS | 0.06 | 1.21 | 1.15 |
GPA.LS | Imobiliaria Construtora Grao Para SA | 0.83 | 0.03 | 0.02 |
HDP.PA | Les Hotels de Paris SA | 9.26 | -0.02 | 0 |
INF.WA | Interferie SA | 0.37 | 0.58 | 0.45 |
LAMPS.AT | Lampsa Hellenic Hotels SA | 0.14 | 0.14 | 0.12 |
MARTI.IS | Marti Otel Isletmeleri AS | 4.84 | 1.23 | 0.26 |
OLYMP.AT | Technical Olympic SA | 0.17 | 0.61 | 0.54 |
TEKTU.IS | Tek Art Insaat Ticaret Turizm Sanayi Ve Yatirimlar AS | 0.53 | 1.49 | 1.05 |
ULAS.IS | Ulaslar Turizm Yatirimlari ve Dayanikli Tuketim Mallari Ticaret Pazarlama AS | 0.01 | 1.43 | 1.42 |
Low | High | |
Unlevered beta | 0.45 | 1.05 |
Relevered beta | 0.22 | 0.55 |
Adjusted relevered beta | 0.48 | 0.7 |
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.