AMOT.TA WACC - Weighted Average Cost of Capital

The WACC of Amot Investments Ltd (AMOT.TA) is 7.4%.

The Cost of Equity of Amot Investments Ltd (AMOT.TA) is 10.75%.

The Cost of Debt of Amot Investments Ltd (AMOT.TA) is 4.95%.

	Range	Selected
Cost of equity	9.10% - 12.40%	10.75%
Tax rate	15.90% - 19.20%	17.55%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.3% - 8.6%	7.4%

WACC

AMOT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.7	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	12.40%

Tax rate	15.90%	19.20%
Debt/Equity ratio	0.99	0.99
Cost of debt	4.00%	5.90%

After-tax WACC	6.3%	8.6%


Selected WACC	7.4%

AMOT.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 AMOT.TA:

cost_of_equity (10.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.7) + 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.