MIPAZ.IS
Milpa Ticari ve Sinai Urunler Pazarlama Sanayi ve Ticaret AS
Price:  
5.53 
TRY
Volume:  
8,449,520.00
Turkey | Real Estate Management & Development
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MIPAZ.IS WACC - Weighted Average Cost of Capital

The WACC of Milpa Ticari ve Sinai Urunler Pazarlama Sanayi ve Ticaret AS (MIPAZ.IS) is 27.4%.

The Cost of Equity of Milpa Ticari ve Sinai Urunler Pazarlama Sanayi ve Ticaret AS (MIPAZ.IS) is 27.35%.
The Cost of Debt of Milpa Ticari ve Sinai Urunler Pazarlama Sanayi ve Ticaret AS (MIPAZ.IS) is 13.70%.

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%
WACC

MIPAZ.IS WACC calculation

Category Low High
Long-term bond rate 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.43 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%

MIPAZ.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 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.