CLIS.TA WACC - Weighted Average Cost of Capital

The WACC of Clal Insurance Enterprises Holdings Ltd (CLIS.TA) is 6.8%.

The Cost of Equity of Clal Insurance Enterprises Holdings Ltd (CLIS.TA) is 11.70%.

The Cost of Debt of Clal Insurance Enterprises Holdings Ltd (CLIS.TA) is 5.00%.

	Range	Selected
Cost of equity	8.90% - 14.50%	11.70%
Tax rate	30.90% - 32.70%	31.80%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.7% - 7.9%	6.8%

WACC

CLIS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.67	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.90%	14.50%

Tax rate	30.90%	32.70%
Debt/Equity ratio	1.45	1.45
Cost of debt	5.00%	5.00%

After-tax WACC	5.7%	7.9%


Selected WACC	6.8%

CLIS.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 CLIS.TA:

cost_of_equity (11.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.