Turkish energy market, sector risk analysis of Turkish natural gas distribution market and calculating the cost of capital of a special natural gas distribution firm

In recent years, together with the developments in Turkish Energy Market, the investments in the sector have increased visibly.In this context The purpose of this thesis is to form an opinion about evaluation of the investment decisions in natural gas distribution market and long-term credit financing of the market by means of to scope out the systematic risk and calculating the Weighted Average Cost of Capital of a special companies in the Market, and also to form an opinion about the market future.For this purpose, while the general information about the Turkish energy market is given, the natural gas distribution market is explained in detail. However, the natural gas distribution market financial data is used solely while making the calculations.On the other hand, company names are not used in the calculation because of the business discretion.In this context, with the data taken from the 44 sector companies balance sheets, income sheets and other financial statements were analysed. After that by using these sheets systematic risk analysis and analysis of The Weighted Average Cost of Capital of the market were made.As a result;?Beta coefficient of the Sector was calculated as 0.418.?The four companies which have the ability to represents Sector the combined leverage ratings vary from 11.93 to 4.96. For this reason, the increase of sales will increase profit per share?the sector's collection risk is almost negligible,?The political risk of the Sector is tariffs. Because tariffs are determined by the regulatory body?the sector is sensitive to economic fluctuations?The sector is in the growth period.?Irregular consumptions of the residential costumers is an other risk for the sector.The company?s WACC which have the ability to represents Sector is calculated as 14,09% pre-tax, 12,61% after-tax, by using the CAMP Model and using sector dept cost 13,50%, risk premium 8,47%, Beta 0,4373, market risk premium 14,48%.