ARPT.TA
Airport City Ltd
Price:  
6,133 
ILS
Volume:  
105,314
Israel | Real Estate Management & Development

ARPT.TA WACC - Weighted Average Cost of Capital

The WACC of Airport City Ltd (ARPT.TA) is 9.1%.

The Cost of Equity of Airport City Ltd (ARPT.TA) is 13.7%.
The Cost of Debt of Airport City Ltd (ARPT.TA) is 4.95%.

RangeSelected
Cost of equity11.8% - 15.6%13.7%
Tax rate21.8% - 25.1%23.45%
Cost of debt4.0% - 5.9%4.95%
WACC7.7% - 10.4%9.1%
WACC

ARPT.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta1.141.38
Additional risk adjustments0.0%0.5%
Cost of equity11.8%15.6%
Tax rate21.8%25.1%
Debt/Equity ratio
0.890.89
Cost of debt4.0%5.9%
After-tax WACC7.7%10.4%
Selected WACC9.1%

ARPT.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 ARPT.TA:

cost_of_equity (13.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.14) + 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.