BEZQ.TA WACC - Weighted Average Cost of Capital

The WACC of Bezeq Israeli Telecommunication Corp Ltd (BEZQ.TA) is 8.1%.

The Cost of Equity of Bezeq Israeli Telecommunication Corp Ltd (BEZQ.TA) is 10.85%.

The Cost of Debt of Bezeq Israeli Telecommunication Corp Ltd (BEZQ.TA) is 4.95%.

	Range	Selected
Cost of equity	9.60% - 12.10%	10.85%
Tax rate	23.90% - 24.70%	24.30%
Cost of debt	4.00% - 5.90%	4.95%
WACC	7.1% - 9.1%	8.1%

WACC

BEZQ.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.78	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.10%

Tax rate	23.90%	24.70%
Debt/Equity ratio	0.63	0.63
Cost of debt	4.00%	5.90%

After-tax WACC	7.1%	9.1%


Selected WACC	8.1%

BEZQ.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 BEZQ.TA:

cost_of_equity (10.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.