AMRK.TA
Amir Marketing and Investments in Agriculture Ltd
Price:  
3,582 
ILS
Volume:  
10,583
Israel | Trading Companies & Distributors

AMRK.TA WACC - Weighted Average Cost of Capital

The WACC of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 8.2%.

The Cost of Equity of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 9%.
The Cost of Debt of Amir Marketing and Investments in Agriculture Ltd (AMRK.TA) is 6.1%.

RangeSelected
Cost of equity7.9% - 10.1%9%
Tax rate31.0% - 36.3%33.65%
Cost of debt5.8% - 6.4%6.1%
WACC7.2% - 9.1%8.2%
WACC

AMRK.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta0.50.6
Additional risk adjustments0.0%0.5%
Cost of equity7.9%10.1%
Tax rate31.0%36.3%
Debt/Equity ratio
0.20.2
Cost of debt5.8%6.4%
After-tax WACC7.2%9.1%
Selected WACC8.2%

AMRK.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 AMRK.TA:

cost_of_equity (9.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.