CEL.TA
Cellcom Israel Ltd
Price:  
2,700.00 
ILS
Volume:  
328,304.00
Israel | Wireless Telecommunication Services
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CEL.TA WACC - Weighted Average Cost of Capital

The WACC of Cellcom Israel Ltd (CEL.TA) is 6.9%.

The Cost of Equity of Cellcom Israel Ltd (CEL.TA) is 8.75%.
The Cost of Debt of Cellcom Israel Ltd (CEL.TA) is 5.30%.

Range Selected
Cost of equity 7.80% - 9.70% 8.75%
Tax rate 24.40% - 27.20% 25.80%
Cost of debt 4.00% - 6.60% 5.30%
WACC 5.9% - 7.8% 6.9%
WACC

CEL.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.48 0.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 9.70%
Tax rate 24.40% 27.20%
Debt/Equity ratio 0.63 0.63
Cost of debt 4.00% 6.60%
After-tax WACC 5.9% 7.8%
Selected WACC 6.9%

CEL.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 CEL.TA:

cost_of_equity (8.75%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.