MNDRS.IS WACC - Weighted Average Cost of Capital

The WACC of Menderes Tekstil Sanayi ve Ticaret AS (MNDRS.IS) is 13.7%.

The Cost of Equity of Menderes Tekstil Sanayi ve Ticaret AS (MNDRS.IS) is 38.55%.

The Cost of Debt of Menderes Tekstil Sanayi ve Ticaret AS (MNDRS.IS) is 5.00%.

	Range	Selected
Cost of equity	35.50% - 41.60%	38.55%
Tax rate	16.00% - 16.40%	16.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	12.9% - 14.5%	13.7%

WACC

MNDRS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.39	1.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	35.50%	41.60%

Tax rate	16.00%	16.40%
Debt/Equity ratio	2.61	2.61
Cost of debt	5.00%	5.00%

After-tax WACC	12.9%	14.5%


Selected WACC	13.7%

MNDRS.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 MNDRS.IS:

cost_of_equity (38.55%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.39) + 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.