AVIV.TA WACC - Weighted Average Cost of Capital

The WACC of Mordechai Aviv Taasiot Beniyah 1973 Ltd (AVIV.TA) is 7.9%.

The Cost of Equity of Mordechai Aviv Taasiot Beniyah 1973 Ltd (AVIV.TA) is 18.10%.

The Cost of Debt of Mordechai Aviv Taasiot Beniyah 1973 Ltd (AVIV.TA) is 5.00%.

	Range	Selected
Cost of equity	15.40% - 20.80%	18.10%
Tax rate	22.70% - 23.70%	23.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.2% - 8.7%	7.9%

WACC

AVIV.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.72	2.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.40%	20.80%

Tax rate	22.70%	23.70%
Debt/Equity ratio	2.47	2.47
Cost of debt	5.00%	5.00%

After-tax WACC	7.2%	8.7%


Selected WACC	7.9%

AVIV.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 AVIV.TA:

cost_of_equity (18.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.72) + 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.