SELEC.IS WACC - Weighted Average Cost of Capital

The WACC of Selcuk Ecza Deposu Ticaret ve Sanayi AS (SELEC.IS) is 28.6%.

The Cost of Equity of Selcuk Ecza Deposu Ticaret ve Sanayi AS (SELEC.IS) is 28.50%.

The Cost of Debt of Selcuk Ecza Deposu Ticaret ve Sanayi AS (SELEC.IS) is 47.45%.

	Range	Selected
Cost of equity	27.10% - 29.90%	28.50%
Tax rate	21.30% - 22.20%	21.75%
Cost of debt	22.00% - 72.90%	47.45%
WACC	26.9% - 30.3%	28.6%

WACC

SELEC.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	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.10%	29.90%

Tax rate	21.30%	22.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	22.00%	72.90%

After-tax WACC	26.9%	30.3%


Selected WACC	28.6%

SELEC.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 SELEC.IS:

cost_of_equity (28.50%) = 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.