AZRG.TA WACC - Weighted Average Cost of Capital

The WACC of Azrieli Group Ltd (AZRG.TA) is 7.7%.

The Cost of Equity of Azrieli Group Ltd (AZRG.TA) is 10.80%.

The Cost of Debt of Azrieli Group Ltd (AZRG.TA) is 4.95%.

	Range	Selected
Cost of equity	9.70% - 11.90%	10.80%
Tax rate	19.50% - 21.60%	20.55%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.8% - 8.7%	7.7%

WACC

AZRG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.79	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	11.90%

Tax rate	19.50%	21.60%
Debt/Equity ratio	0.79	0.79
Cost of debt	4.00%	5.90%

After-tax WACC	6.8%	8.7%


Selected WACC	7.7%

AZRG.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 AZRG.TA:

cost_of_equity (10.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.