The WACC of Milpa Ticari ve Sinai Urunler Pazarlama Sanayi ve Ticaret AS (MIPAZ.IS) is 27.4%.
Range | Selected | |
Cost of equity | 25.70% - 29.00% | 27.35% |
Tax rate | 20.50% - 20.70% | 20.60% |
Cost of debt | 7.00% - 20.40% | 13.70% |
WACC | 25.7% - 29.0% | 27.4% |
Category | Low | High |
Long-term bond rate | 21.4% | 21.9% |
Equity market risk premium | 10.2% | 11.2% |
Adjusted beta | 0.43 | 0.59 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 25.70% | 29.00% |
Tax rate | 20.50% | 20.70% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 7.00% | 20.40% |
After-tax WACC | 25.7% | 29.0% |
Selected WACC | 27.4% | |
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 MIPAZ.IS:
cost_of_equity (27.35%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.43) + 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.