TCELL.IS WACC - Weighted Average Cost of Capital

The WACC of Turkcell Iletisim Hizmetleri AS (TCELL.IS) is 23.1%.

The Cost of Equity of Turkcell Iletisim Hizmetleri AS (TCELL.IS) is 28.35%.

The Cost of Debt of Turkcell Iletisim Hizmetleri AS (TCELL.IS) is 16.40%.

	Range	Selected
Cost of equity	26.70% - 30.00%	28.35%
Tax rate	20.00% - 21.40%	20.70%
Cost of debt	10.30% - 22.50%	16.40%
WACC	20.4% - 25.8%	23.1%

WACC

TCELL.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.52	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.70%	30.00%

Tax rate	20.00%	21.40%
Debt/Equity ratio	0.51	0.51
Cost of debt	10.30%	22.50%

After-tax WACC	20.4%	25.8%


Selected WACC	23.1%

TCELL.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 TCELL.IS:

cost_of_equity (28.35%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.52) + 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.