AVER.TA WACC - Weighted Average Cost of Capital

The WACC of Averbuch Formica Center Ltd (AVER.TA) is 7.5%.

The Cost of Equity of Averbuch Formica Center Ltd (AVER.TA) is 7.80%.

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

	Range	Selected
Cost of equity	7.00% - 8.60%	7.80%
Tax rate	12.80% - 18.00%	15.40%
Cost of debt	6.10% - 7.00%	6.55%
WACC	6.7% - 8.2%	7.5%

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	0.35	0.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	8.60%

Tax rate	12.80%	18.00%
Debt/Equity ratio	0.17	0.17
Cost of debt	6.10%	7.00%

After-tax WACC	6.7%	8.2%


Selected WACC	7.5%

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 (7.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.35) + 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.