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

The WACC of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 41.0%.

The Cost of Equity of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 41.85%.

The Cost of Debt of Turkiye Petrol Rafinerileri AS (TUPRS.E.IS) is 28.20%.

	Range	Selected
Cost of equity	40.90% - 42.80%	41.85%
Tax rate	23.10% - 35.10%	29.10%
Cost of debt	26.10% - 30.30%	28.20%
WACC	40.1% - 41.8%	41.0%

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	0.84	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	40.90%	42.80%

Tax rate	23.10%	35.10%
Debt/Equity ratio	0.04	0.04
Cost of debt	26.10%	30.30%

After-tax WACC	40.1%	41.8%


Selected WACC	41.0%

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 (41.85%) = risk_free_rate (28.85%) + equity_risk_premium (15.10%) * adjusted_beta (0.84) + 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.