TUPRS.IS WACC - Weighted Average Cost of Capital

The WACC of Turkiye Petrol Rafinerileri AS (TUPRS.IS) is 22.4%.

The Cost of Equity of Turkiye Petrol Rafinerileri AS (TUPRS.IS) is 29.95%.

The Cost of Debt of Turkiye Petrol Rafinerileri AS (TUPRS.IS) is 17.85%.

	Range	Selected
Cost of equity	28.70% - 31.20%	29.95%
Tax rate	11.20% - 23.00%	17.10%
Cost of debt	8.40% - 27.30%	17.85%
WACC	18.6% - 26.3%	22.4%

WACC

TUPRS.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.72	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.70%	31.20%

Tax rate	11.20%	23.00%
Debt/Equity ratio	0.92	0.92
Cost of debt	8.40%	27.30%

After-tax WACC	18.6%	26.3%


Selected WACC	22.4%

TUPRS.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.IS:

cost_of_equity (29.95%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * 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.