RTALB.IS WACC - Weighted Average Cost of Capital

The WACC of RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS (RTALB.IS) is 27.5%.

The Cost of Equity of RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS (RTALB.IS) is 27.90%.

The Cost of Debt of RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS (RTALB.IS) is 15.35%.

	Range	Selected
Cost of equity	26.60% - 29.20%	27.90%
Tax rate	13.80% - 18.20%	16.00%
Cost of debt	8.70% - 22.00%	15.35%
WACC	26.1% - 28.9%	27.5%

WACC

RTALB.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.52	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.60%	29.20%

Tax rate	13.80%	18.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	8.70%	22.00%

After-tax WACC	26.1%	28.9%


Selected WACC	27.5%

RTALB.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 RTALB.IS:

cost_of_equity (27.90%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.52) + 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.