PENGD.IS WACC - Weighted Average Cost of Capital

The WACC of Penguen Gida Sanayi AS (PENGD.IS) is 26.1%.

The Cost of Equity of Penguen Gida Sanayi AS (PENGD.IS) is 28.20%.

The Cost of Debt of Penguen Gida Sanayi AS (PENGD.IS) is 20.70%.

	Range	Selected
Cost of equity	26.10% - 30.30%	28.20%
Tax rate	4.40% - 31.80%	18.10%
Cost of debt	10.60% - 30.80%	20.70%
WACC	23.5% - 28.8%	26.1%

WACC

PENGD.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.47	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.10%	30.30%

Tax rate	4.40%	31.80%
Debt/Equity ratio	0.2	0.2
Cost of debt	10.60%	30.80%

After-tax WACC	23.5%	28.8%


Selected WACC	26.1%

PENGD.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 PENGD.IS:

cost_of_equity (28.20%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.47) + 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.