SISE.IS WACC - Weighted Average Cost of Capital

The WACC of Turkiye Sise ve Cam Fabrikalari AS (SISE.IS) is 24.1%.

The Cost of Equity of Turkiye Sise ve Cam Fabrikalari AS (SISE.IS) is 30.25%.

The Cost of Debt of Turkiye Sise ve Cam Fabrikalari AS (SISE.IS) is 15.75%.

	Range	Selected
Cost of equity	28.90% - 31.60%	30.25%
Tax rate	7.90% - 10.90%	9.40%
Cost of debt	7.80% - 23.70%	15.75%
WACC	20.7% - 27.6%	24.1%

WACC

SISE.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.74	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.90%	31.60%

Tax rate	7.90%	10.90%
Debt/Equity ratio	0.61	0.61
Cost of debt	7.80%	23.70%

After-tax WACC	20.7%	27.6%


Selected WACC	24.1%

SISE.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 SISE.IS:

cost_of_equity (30.25%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.74) + 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.