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

The WACC of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 39.8%.

The Cost of Equity of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 41.00%.

The Cost of Debt of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 23.35%.

	Range	Selected
Cost of equity	40.10% - 41.90%	41.00%
Tax rate	25.80% - 37.70%	31.75%
Cost of debt	15.00% - 31.70%	23.35%
WACC	38.7% - 40.8%	39.8%

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	0.79	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	40.10%	41.90%

Tax rate	25.80%	37.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	15.00%	31.70%

After-tax WACC	38.7%	40.8%


Selected WACC	39.8%

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 (41.00%) = risk_free_rate (28.85%) + equity_risk_premium (15.10%) * adjusted_beta (0.79) + 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.