The WACC of Adgar Investments and Development Ltd (ADGR.TA) is 6.8%.
Range | Selected | |
Cost of equity | 12.2% - 16.1% | 14.15% |
Tax rate | 28.2% - 40.5% | 34.35% |
Cost of debt | 4.0% - 13.3% | 8.65% |
WACC | 4.4% - 9.3% | 6.8% |
Category | Low | High |
Long-term bond rate | 4.8% | 5.3% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1.2 | 1.44 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.2% | 16.1% |
Tax rate | 28.2% | 40.5% |
Debt/Equity ratio | 5.16 | 5.16 |
Cost of debt | 4.0% | 13.3% |
After-tax WACC | 4.4% | 9.3% |
Selected WACC | 6.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ADGR.TA | Adgar Investments and Development Ltd | 5.16 | 1.14 | 0.24 |
034810.KQ | Haesung Industrial Co Ltd | 3.52 | 1.12 | 0.32 |
6093.HK | Hevol Services Group Co Ltd | 0.14 | 0.23 | 0.21 |
BTE.SI | Bund Center Investment Ltd | 0 | 0.2 | 0.2 |
BYSD.TA | Bayside Land Corporation Ltd | 0.94 | 0.84 | 0.5 |
DRSL.TA | Dorsel BAZ Ltd | 1.36 | 1.04 | 0.53 |
GZT.TA | Gazit Globe Ltd | 5.08 | 1.36 | 0.3 |
LVPR.TA | Levinstein Properties Ltd | 0.44 | 0.85 | 0.65 |
OBAS.TA | Optibase Ltd | 1.92 | -0.17 | -0.07 |
Low | High | |
Unlevered beta | 0.25 | 0.31 |
Relevered beta | 1.3 | 1.66 |
Adjusted relevered beta | 1.2 | 1.44 |
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 ADGR.TA:
cost_of_equity (14.15%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.2) + 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.