BCOM.TA
B Communications Ltd
Price:  
2,097 
ILS
Volume:  
307,164
Israel | Diversified Telecommunication Services

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 28.05%.
The Cost of Debt of B Communications Ltd (BCOM.TA) is 5%.

RangeSelected
Cost of equity22.5% - 33.6%28.05%
Tax rate26.9% - 27.2%27.05%
Cost of debt4.0% - 6.0%5%
WACC5.9% - 8.8%7.3%
WACC

BCOM.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta2.893.9
Additional risk adjustments0.0%0.5%
Cost of equity22.5%33.6%
Tax rate26.9%27.2%
Debt/Equity ratio
5.645.64
Cost of debt4.0%6.0%
After-tax WACC5.9%8.8%
Selected WACC7.3%

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 (28.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (2.89) + 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.