TAVHL.IS WACC - Weighted Average Cost of Capital

The WACC of TAV Havalimanlari Holding AS (TAVHL.IS) is 14.9%.

The Cost of Equity of TAV Havalimanlari Holding AS (TAVHL.IS) is 33.30%.

The Cost of Debt of TAV Havalimanlari Holding AS (TAVHL.IS) is 5.50%.

	Range	Selected
Cost of equity	30.90% - 35.70%	33.30%
Tax rate	24.50% - 27.70%	26.10%
Cost of debt	4.00% - 7.00%	5.50%
WACC	13.4% - 16.4%	14.9%

WACC

TAVHL.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.94	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	30.90%	35.70%

Tax rate	24.50%	27.70%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.00%	7.00%

After-tax WACC	13.4%	16.4%


Selected WACC	14.9%

TAVHL.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 TAVHL.IS:

cost_of_equity (33.30%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.94) + 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.