MGROS.E.IS WACC - Weighted Average Cost of Capital

The WACC of Migros Ticaret AS (MGROS.E.IS) is 48.1%.

The Cost of Equity of Migros Ticaret AS (MGROS.E.IS) is 43.65%.

The Cost of Debt of Migros Ticaret AS (MGROS.E.IS) is 79.90%.

	Range	Selected
Cost of equity	42.30% - 45.00%	43.65%
Tax rate	17.60% - 21.40%	19.50%
Cost of debt	40.40% - 119.40%	79.90%
WACC	40.2% - 56.0%	48.1%

WACC

MGROS.E.IS WACC calculation

Category	Low	High

Long-term bond rate	28.6%	29.1%
Equity market risk premium	14.6%	15.6%
Adjusted beta	0.94	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	42.30%	45.00%

Tax rate	17.60%	21.40%
Debt/Equity ratio	0.29	0.29
Cost of debt	40.40%	119.40%

After-tax WACC	40.2%	56.0%


Selected WACC	48.1%

MGROS.E.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 MGROS.E.IS:

cost_of_equity (43.65%) = risk_free_rate (28.85%) + equity_risk_premium (15.10%) * adjusted_beta (0.94) + 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.