TSPOR.IS WACC - Weighted Average Cost of Capital

The WACC of Trabzonspor Sportif Yatirim ve Futbol Isletmeciligi Ticaret AS (TSPOR.IS) is 20.8%.

The Cost of Equity of Trabzonspor Sportif Yatirim ve Futbol Isletmeciligi Ticaret AS (TSPOR.IS) is 27.60%.

The Cost of Debt of Trabzonspor Sportif Yatirim ve Futbol Isletmeciligi Ticaret AS (TSPOR.IS) is 12.60%.

	Range	Selected
Cost of equity	26.50% - 28.70%	27.60%
Tax rate	21.20% - 22.00%	21.60%
Cost of debt	7.00% - 18.20%	12.60%
WACC	18.5% - 23.1%	20.8%

WACC

TSPOR.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.51	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.50%	28.70%

Tax rate	21.20%	22.00%
Debt/Equity ratio	0.62	0.62
Cost of debt	7.00%	18.20%

After-tax WACC	18.5%	23.1%


Selected WACC	20.8%

TSPOR.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 TSPOR.IS:

cost_of_equity (27.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.51) + 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.