METUR.IS
Metemtur Otelcilik ve Turizm Isletmeleri AS
Price:  
3.86 
TRY
Volume:  
1,282,170
Turkey | Hotels, Restaurants & Leisure

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 28.2%.
The Cost of Debt of Metemtur Otelcilik ve Turizm Isletmeleri AS (METUR.IS) is 7%.

RangeSelected
Cost of equity26.2% - 30.2%28.2%
Tax rate21.2% - 22.0%21.6%
Cost of debt7.0% - 7.0%7%
WACC24.1% - 27.6%25.9%
WACC

METUR.IS WACC calculation

CategoryLowHigh
Long-term bond rate21.4%21.9%
Equity market risk premium10.2%11.2%
Adjusted beta0.480.7
Additional risk adjustments0.0%0.5%
Cost of equity26.2%30.2%
Tax rate21.2%22.0%
Debt/Equity ratio
0.110.11
Cost of debt7.0%7.0%
After-tax WACC24.1%27.6%
Selected WACC25.9%

METUR.IS WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.451.05
Relevered beta0.220.55
Adjusted relevered beta0.480.7

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.