CMER.TA
C Mer Industries Ltd
Price:  
3,360.00 
ILS
Volume:  
9,421.00
Israel | Construction & Engineering
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CMER.TA WACC - Weighted Average Cost of Capital

The WACC of C Mer Industries Ltd (CMER.TA) is 7.3%.

The Cost of Equity of C Mer Industries Ltd (CMER.TA) is 8.15%.
The Cost of Debt of C Mer Industries Ltd (CMER.TA) is 6.25%.

Range Selected
Cost of equity 6.90% - 9.40% 8.15%
Tax rate 10.20% - 15.80% 13.00%
Cost of debt 6.20% - 6.30% 6.25%
WACC 6.5% - 8.2% 7.3%
WACC

CMER.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.33 0.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.40%
Tax rate 10.20% 15.80%
Debt/Equity ratio 0.42 0.42
Cost of debt 6.20% 6.30%
After-tax WACC 6.5% 8.2%
Selected WACC 7.3%

CMER.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 CMER.TA:

cost_of_equity (8.15%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.33) + 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.