TUCLK.IS WACC - Weighted Average Cost of Capital

The WACC of Tugcelik Aluminyum ve Metal Mamulleri Sanayi ve Ticaret AS (TUCLK.IS) is 23.2%.

The Cost of Equity of Tugcelik Aluminyum ve Metal Mamulleri Sanayi ve Ticaret AS (TUCLK.IS) is 28.75%.

The Cost of Debt of Tugcelik Aluminyum ve Metal Mamulleri Sanayi ve Ticaret AS (TUCLK.IS) is 13.35%.

	Range	Selected
Cost of equity	26.60% - 30.90%	28.75%
Tax rate	12.10% - 13.40%	12.75%
Cost of debt	4.00% - 22.70%	13.35%
WACC	19.1% - 27.2%	23.2%

WACC

TUCLK.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	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.60%	30.90%

Tax rate	12.10%	13.40%
Debt/Equity ratio	0.48	0.48
Cost of debt	4.00%	22.70%

After-tax WACC	19.1%	27.2%


Selected WACC	23.2%

TUCLK.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 TUCLK.IS:

cost_of_equity (28.75%) = 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.