TUKAS.IS WACC - Weighted Average Cost of Capital

The WACC of Tukas Gida Sanayi ve Ticaret AS (TUKAS.IS) is 24.5%.

The Cost of Equity of Tukas Gida Sanayi ve Ticaret AS (TUKAS.IS) is 27.80%.

The Cost of Debt of Tukas Gida Sanayi ve Ticaret AS (TUKAS.IS) is 19.40%.

	Range	Selected
Cost of equity	25.80% - 29.80%	27.80%
Tax rate	25.10% - 25.40%	25.25%
Cost of debt	13.40% - 25.40%	19.40%
WACC	21.9% - 27.1%	24.5%

WACC

TUKAS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.44	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	25.80%	29.80%

Tax rate	25.10%	25.40%
Debt/Equity ratio	0.33	0.33
Cost of debt	13.40%	25.40%

After-tax WACC	21.9%	27.1%


Selected WACC	24.5%

TUKAS.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 TUKAS.IS:

cost_of_equity (27.80%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.44) + 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.