PINSU.IS WACC - Weighted Average Cost of Capital

The WACC of Pinar Su ve Icecek Sanayi ve Ticaret AS (PINSU.IS) is 22.4%.

The Cost of Equity of Pinar Su ve Icecek Sanayi ve Ticaret AS (PINSU.IS) is 29.85%.

The Cost of Debt of Pinar Su ve Icecek Sanayi ve Ticaret AS (PINSU.IS) is 14.05%.

	Range	Selected
Cost of equity	27.10% - 32.60%	29.85%
Tax rate	3.10% - 4.10%	3.60%
Cost of debt	7.00% - 21.10%	14.05%
WACC	17.9% - 27.0%	22.4%

WACC

PINSU.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.56	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.10%	32.60%

Tax rate	3.10%	4.10%
Debt/Equity ratio	0.83	0.83
Cost of debt	7.00%	21.10%

After-tax WACC	17.9%	27.0%


Selected WACC	22.4%

PINSU.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 PINSU.IS:

cost_of_equity (29.85%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.56) + 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.