UTPYA.IS WACC - Weighted Average Cost of Capital

The WACC of Utopya Turizm Insaat Isletmecilik AS (UTPYA.IS) is 29.2%.

The Cost of Equity of Utopya Turizm Insaat Isletmecilik AS (UTPYA.IS) is 29.25%.

The Cost of Debt of Utopya Turizm Insaat Isletmecilik AS (UTPYA.IS) is 34.40%.

	Range	Selected
Cost of equity	27.90% - 30.60%	29.25%
Tax rate	3.50% - 5.10%	4.30%
Cost of debt	34.40% - 34.40%	34.40%
WACC	27.9% - 30.6%	29.2%

WACC

UTPYA.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.64	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	27.90%	30.60%

Tax rate	3.50%	5.10%
Debt/Equity ratio	0	0
Cost of debt	34.40%	34.40%

After-tax WACC	27.9%	30.6%


Selected WACC	29.2%

UTPYA.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 UTPYA.IS:

cost_of_equity (29.25%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.64) + 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.