BSEN.TA WACC - Weighted Average Cost of Capital

The WACC of Bet Shemesh Engines Holdings 1997 Ltd (BSEN.TA) is 9.7%.

The Cost of Equity of Bet Shemesh Engines Holdings 1997 Ltd (BSEN.TA) is 9.70%.

The Cost of Debt of Bet Shemesh Engines Holdings 1997 Ltd (BSEN.TA) is 5.50%.

	Range	Selected
Cost of equity	8.20% - 11.20%	9.70%
Tax rate	14.70% - 18.50%	16.60%
Cost of debt	5.50% - 5.50%	5.50%
WACC	8.2% - 11.1%	9.7%

WACC

BSEN.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.6	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	11.20%

Tax rate	14.70%	18.50%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.50%	5.50%

After-tax WACC	8.2%	11.1%


Selected WACC	9.7%

BSEN.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 BSEN.TA:

cost_of_equity (9.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.6) + 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.