SANFM.IS WACC - Weighted Average Cost of Capital

The WACC of Sanifoam Sunger Sanayi ve Ticaret AS (SANFM.IS) is 25.6%.

The Cost of Equity of Sanifoam Sunger Sanayi ve Ticaret AS (SANFM.IS) is 28.15%.

The Cost of Debt of Sanifoam Sunger Sanayi ve Ticaret AS (SANFM.IS) is 20.40%.

	Range	Selected
Cost of equity	26.60% - 29.70%	28.15%
Tax rate	27.20% - 29.00%	28.10%
Cost of debt	14.60% - 26.20%	20.40%
WACC	23.6% - 27.7%	25.6%

WACC

SANFM.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.51	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.60%	29.70%

Tax rate	27.20%	29.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	14.60%	26.20%

After-tax WACC	23.6%	27.7%


Selected WACC	25.6%

SANFM.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 SANFM.IS:

cost_of_equity (28.15%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.51) + 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.