PGSUS.IS WACC - Weighted Average Cost of Capital

The WACC of Pegasus Hava Tasimaciligi AS (PGSUS.IS) is 14.8%.

The Cost of Equity of Pegasus Hava Tasimaciligi AS (PGSUS.IS) is 33.80%.

The Cost of Debt of Pegasus Hava Tasimaciligi AS (PGSUS.IS) is 6.25%.

	Range	Selected
Cost of equity	31.60% - 36.00%	33.80%
Tax rate	4.80% - 6.10%	5.45%
Cost of debt	5.50% - 7.00%	6.25%
WACC	13.6% - 16.0%	14.8%

WACC

PGSUS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.01	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	31.60%	36.00%

Tax rate	4.80%	6.10%
Debt/Equity ratio	2.14	2.14
Cost of debt	5.50%	7.00%

After-tax WACC	13.6%	16.0%


Selected WACC	14.8%

PGSUS.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 PGSUS.IS:

cost_of_equity (33.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.01) + 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.