AVER.TA
Averbuch Formica Center Ltd
Price:  
1,004.00 
ILS
Volume:  
241.00
Israel | Trading Companies & Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

AVER.TA WACC - Weighted Average Cost of Capital

The WACC of Averbuch Formica Center Ltd (AVER.TA) is 7.3%.

The Cost of Equity of Averbuch Formica Center Ltd (AVER.TA) is 7.65%.
The Cost of Debt of Averbuch Formica Center Ltd (AVER.TA) is 6.55%.

Range Selected
Cost of equity 6.70% - 8.60% 7.65%
Tax rate 12.80% - 18.00% 15.40%
Cost of debt 6.10% - 7.00% 6.55%
WACC 6.5% - 8.2% 7.3%
WACC

AVER.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.3 0.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 8.60%
Tax rate 12.80% 18.00%
Debt/Equity ratio 0.18 0.18
Cost of debt 6.10% 7.00%
After-tax WACC 6.5% 8.2%
Selected WACC 7.3%

AVER.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 AVER.TA:

cost_of_equity (7.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.3) + 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.