BOTI.TA WACC - Weighted Average Cost of Capital

The WACC of Bonei Hatichon Civil Engineering and Infrastructures Ltd (BOTI.TA) is 10.5%.

The Cost of Equity of Bonei Hatichon Civil Engineering and Infrastructures Ltd (BOTI.TA) is 8.50%.

The Cost of Debt of Bonei Hatichon Civil Engineering and Infrastructures Ltd (BOTI.TA) is 15.55%.

	Range	Selected
Cost of equity	7.40% - 9.60%	8.50%
Tax rate	23.00% - 23.30%	23.15%
Cost of debt	6.30% - 24.80%	15.55%
WACC	5.9% - 15.1%	10.5%

WACC

BOTI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.42	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	9.60%

Tax rate	23.00%	23.30%
Debt/Equity ratio	1.41	1.41
Cost of debt	6.30%	24.80%

After-tax WACC	5.9%	15.1%


Selected WACC	10.5%

BOTI.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 BOTI.TA:

cost_of_equity (8.50%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.42) + 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.