ALBA.TA WACC - Weighted Average Cost of Capital
The WACC of Al-Bad Massuot Yitzhak Ltd (ALBA.TA) is 7.1%.
| Range | Selected | |
| Cost of equity | 9.8% - 16.3% | 13.05% |
| Tax rate | 26.0% - 28.2% | 27.1% |
| Cost of debt | 4.0% - 8.0% | 6% |
| WACC | 5.2% - 9.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.81 | 1.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 16.3% |
| Tax rate | 26.0% | 28.2% |
| Debt/Equity ratio | 2.12 | 2.12 |
| Cost of debt | 4.0% | 8.0% |
| After-tax WACC | 5.2% | 9.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ALBA.TA | Al-Bad Massuot Yitzhak Ltd | 2.12 | 1.18 | 0.46 |
| 004540.KS | Kleannara Co Ltd | 3.61 | 0.69 | 0.19 |
| 065950.KQ | Welcron Co Ltd | 2.83 | 0.55 | 0.18 |
| 2222.HK | NVC International Holdings Ltd | 0.02 | 0.74 | 0.73 |
| 4951.T | ST Corp | 0.02 | 0.34 | 0.34 |
| 7818.T | Transaction Co Ltd | 0.01 | -0.1 | -0.1 |
| 9919.TW | KNH Enterprise Co Ltd | 1.01 | 1.07 | 0.62 |
| DGC.VN | Ducgiang Chemicals Group JSC | 0.02 | 1.5 | 1.47 |
| JYOTHYLAB.NS | Jyothy Labs Ltd | 0 | 0.99 | 0.99 |
| NTPM.KL | NTPM Holdings Bhd | 1.15 | 0.36 | 0.2 |
| UCID.JK | Uni-charm Indonesia PT | 0.1 | 0.79 | 0.74 |
| Low | High | |
| Unlevered beta | 0.34 | 0.62 |
| Relevered beta | 0.72 | 1.69 |
| Adjusted relevered beta | 0.81 | 1.46 |
ALBA.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 ALBA.TA:
cost_of_equity (13.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.