TMPOL.IS WACC - Weighted Average Cost of Capital

The WACC of Temapol Polimer Plastik ve Insaat Sanayi Ticaret AS (TMPOL.IS) is 25.5%.

The Cost of Equity of Temapol Polimer Plastik ve Insaat Sanayi Ticaret AS (TMPOL.IS) is 28.25%.

The Cost of Debt of Temapol Polimer Plastik ve Insaat Sanayi Ticaret AS (TMPOL.IS) is 19.35%.

	Range	Selected
Cost of equity	26.60% - 29.90%	28.25%
Tax rate	20.10% - 20.90%	20.50%
Cost of debt	13.30% - 25.40%	19.35%
WACC	23.2% - 27.7%	25.5%

WACC

TMPOL.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	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.60%	29.90%

Tax rate	20.10%	20.90%
Debt/Equity ratio	0.28	0.28
Cost of debt	13.30%	25.40%

After-tax WACC	23.2%	27.7%


Selected WACC	25.5%

TMPOL.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 TMPOL.IS:

cost_of_equity (28.25%) = 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.