ADGR.TA
Adgar Investments and Development Ltd
Price:  
466 
ILS
Volume:  
61,787
Israel | Real Estate Management & Development

ADGR.TA WACC - Weighted Average Cost of Capital

The WACC of Adgar Investments and Development Ltd (ADGR.TA) is 6.8%.

The Cost of Equity of Adgar Investments and Development Ltd (ADGR.TA) is 14.15%.
The Cost of Debt of Adgar Investments and Development Ltd (ADGR.TA) is 8.65%.

RangeSelected
Cost of equity12.2% - 16.1%14.15%
Tax rate28.2% - 40.5%34.35%
Cost of debt4.0% - 13.3%8.65%
WACC4.4% - 9.3%6.8%
WACC

ADGR.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta1.21.44
Additional risk adjustments0.0%0.5%
Cost of equity12.2%16.1%
Tax rate28.2%40.5%
Debt/Equity ratio
5.165.16
Cost of debt4.0%13.3%
After-tax WACC4.4%9.3%
Selected WACC6.8%

ADGR.TA'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 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.