TAALA.HE WACC - Weighted Average Cost of Capital
The WACC of Taaleri Plc (TAALA.HE) is 8.9%.
| Range | Selected | |
| Cost of equity | 7.5% - 10.5% | 9% |
| Tax rate | 17.0% - 19.4% | 18.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.5% - 10.4% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 5.7% | 6.7% |
| Adjusted beta | 0.83 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 10.5% |
| Tax rate | 17.0% | 19.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.5% | 10.4% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TAALA.HE | Taaleri Plc | 0.01 | 0.52 | 0.51 |
| AFHP.L | AFH Financial Group PLC | 0.15 | 0.63 | 0.56 |
| DZGYO.IS | Deniz Gayrimenkul Yatirim Ortakligi AS | 0.16 | 0.98 | 0.87 |
| ESO.L | EPE Special Opportunities Ltd | 0.23 | 1.38 | 1.17 |
| GHE.L | Gresham House PLC | 0 | 1.4 | 1.4 |
| GOZDE.IS | Gozde Girisim Sermayesi Yatirim Ortakligi AS | 0.06 | 1.43 | 1.37 |
| IDIP.PA | IDI SCA | 0.11 | 0.56 | 0.51 |
| MTW.L | Mattioli Woods PLC | 0.01 | 0.27 | 0.27 |
| PMI.L | Premier Miton Group PLC | 0.02 | 1.02 | 1 |
| RIV.L | River and Mercantile Group PLC | 0.03 | 1.03 | 1.01 |
| Low | High | |
| Unlevered beta | 0.75 | 1.01 |
| Relevered beta | 0.75 | 1.01 |
| Adjusted relevered beta | 0.83 | 1.01 |
TAALA.HE'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 TAALA.HE:
cost_of_equity (9.00%) = risk_free_rate (2.95%) + equity_risk_premium (6.20%) * adjusted_beta (0.83) + 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.