AGHOL.IS WACC - Weighted Average Cost of Capital

The WACC of AG Anadolu Grubu Holding AS (AGHOL.IS) is 16.8%.

The Cost of Equity of AG Anadolu Grubu Holding AS (AGHOL.IS) is 39.00%.

The Cost of Debt of AG Anadolu Grubu Holding AS (AGHOL.IS) is 17.85%.

	Range	Selected
Cost of equity	35.70% - 42.30%	39.00%
Tax rate	31.30% - 33.70%	32.50%
Cost of debt	9.50% - 26.20%	17.85%
WACC	11.8% - 21.9%	16.8%

WACC

AGHOL.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	1.41	1.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	35.70%	42.30%

Tax rate	31.30%	33.70%
Debt/Equity ratio	4.55	4.55
Cost of debt	9.50%	26.20%

After-tax WACC	11.8%	21.9%


Selected WACC	16.8%

AGHOL.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 AGHOL.IS:

cost_of_equity (39.00%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (1.41) + 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.