BCOM.TA WACC - Weighted Average Cost of Capital

The WACC of B Communications Ltd (BCOM.TA) is 7.3%.

The Cost of Equity of B Communications Ltd (BCOM.TA) is 27.65%.

The Cost of Debt of B Communications Ltd (BCOM.TA) is 5.00%.

	Range	Selected
Cost of equity	22.30% - 33.00%	27.65%
Tax rate	26.90% - 27.20%	27.05%
Cost of debt	4.00% - 6.00%	5.00%
WACC	5.8% - 8.7%	7.3%

WACC

BCOM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	2.85	3.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.30%	33.00%

Tax rate	26.90%	27.20%
Debt/Equity ratio	5.69	5.69
Cost of debt	4.00%	6.00%

After-tax WACC	5.8%	8.7%


Selected WACC	7.3%

BCOM.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 BCOM.TA:

cost_of_equity (27.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (2.85) + 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.