TTKOM.IS WACC - Weighted Average Cost of Capital

The WACC of Turk Telekomunikasyon AS (TTKOM.IS) is 20.8%.

The Cost of Equity of Turk Telekomunikasyon AS (TTKOM.IS) is 29.20%.

The Cost of Debt of Turk Telekomunikasyon AS (TTKOM.IS) is 15.25%.

	Range	Selected
Cost of equity	27.30% - 31.10%	29.20%
Tax rate	20.50% - 26.40%	23.45%
Cost of debt	7.40% - 23.10%	15.25%
WACC	17.1% - 24.4%	20.8%

WACC

TTKOM.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	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.30%	31.10%

Tax rate	20.50%	26.40%
Debt/Equity ratio	0.91	0.91
Cost of debt	7.40%	23.10%

After-tax WACC	17.1%	24.4%


Selected WACC	20.8%

TTKOM.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 TTKOM.IS:

cost_of_equity (29.20%) = 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.