ULUUN.IS WACC - Weighted Average Cost of Capital

The WACC of Ulusoy Un Sanayi ve Ticaret AS (ULUUN.IS) is 26.2%.

The Cost of Equity of Ulusoy Un Sanayi ve Ticaret AS (ULUUN.IS) is 32.55%.

The Cost of Debt of Ulusoy Un Sanayi ve Ticaret AS (ULUUN.IS) is 22.05%.

	Range	Selected
Cost of equity	30.80% - 34.30%	32.55%
Tax rate	13.60% - 14.70%	14.15%
Cost of debt	16.80% - 27.30%	22.05%
WACC	23.2% - 29.2%	26.2%

WACC

ULUUN.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.93	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	30.80%	34.30%

Tax rate	13.60%	14.70%
Debt/Equity ratio	0.87	0.87
Cost of debt	16.80%	27.30%

After-tax WACC	23.2%	29.2%


Selected WACC	26.2%

ULUUN.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 ULUUN.IS:

cost_of_equity (32.55%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.93) + 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.