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.