ALHE.TA WACC - Weighted Average Cost of Capital

The WACC of Alony Hetz Properties and Investments Ltd (ALHE.TA) is 7.5%.

The Cost of Equity of Alony Hetz Properties and Investments Ltd (ALHE.TA) is 16.25%.

The Cost of Debt of Alony Hetz Properties and Investments Ltd (ALHE.TA) is 6.20%.

	Range	Selected
Cost of equity	14.60% - 17.90%	16.25%
Tax rate	15.30% - 19.30%	17.30%
Cost of debt	4.00% - 8.40%	6.20%
WACC	5.8% - 9.2%	7.5%

WACC

ALHE.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.59	1.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.90%

Tax rate	15.30%	19.30%
Debt/Equity ratio	3.56	3.56
Cost of debt	4.00%	8.40%

After-tax WACC	5.8%	9.2%


Selected WACC	7.5%

ALHE.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 ALHE.TA:

cost_of_equity (16.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.59) + 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.