TUPRS.E.IS WACC - Weighted Average Cost of Capital

The WACC of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 38.2%.

The Cost of Equity of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 39.90%.

The Cost of Debt of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 11.00%.

	Range	Selected
Cost of equity	39.00% - 40.80%	39.90%
Tax rate	25.80% - 37.70%	31.75%
Cost of debt	7.00% - 15.00%	11.00%
WACC	37.3% - 39.1%	38.2%

WACC

TUPRS.E.IS WACC calculation

Category	Low	High

Long-term bond rate	28.6%	29.1%
Equity market risk premium	14.6%	15.6%
Adjusted beta	0.72	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	39.00%	40.80%

Tax rate	25.80%	37.70%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.00%	15.00%

After-tax WACC	37.3%	39.1%


Selected WACC	38.2%

TUPRS.E.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 TUPRS.E.IS:

cost_of_equity (39.90%) = risk_free_rate (28.85%) + equity_risk_premium (15.10%) * adjusted_beta (0.72) + 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.