TBORG.IS WACC - Weighted Average Cost of Capital

The WACC of Turk Tuborg Bira ve Malt Sanayii AS (TBORG.IS) is 27.9%.

The Cost of Equity of Turk Tuborg Bira ve Malt Sanayii AS (TBORG.IS) is 28.60%.

The Cost of Debt of Turk Tuborg Bira ve Malt Sanayii AS (TBORG.IS) is 22.00%.

	Range	Selected
Cost of equity	27.30% - 29.90%	28.60%
Tax rate	21.40% - 21.90%	21.65%
Cost of debt	22.00% - 22.00%	22.00%
WACC	26.7% - 29.0%	27.9%

WACC

TBORG.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.59	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.30%	29.90%

Tax rate	21.40%	21.90%
Debt/Equity ratio	0.07	0.07
Cost of debt	22.00%	22.00%

After-tax WACC	26.7%	29.0%


Selected WACC	27.9%

TBORG.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 TBORG.IS:

cost_of_equity (28.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.59) + 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.