CRNT
Ceragon Networks Ltd
Price:  
2.6 
USD
Volume:  
554,203
Israel | Communications Equipment

CRNT WACC - Weighted Average Cost of Capital

The WACC of Ceragon Networks Ltd (CRNT) is 9.9%.

The Cost of Equity of Ceragon Networks Ltd (CRNT) is 10.15%.
The Cost of Debt of Ceragon Networks Ltd (CRNT) is 11.7%.

RangeSelected
Cost of equity8.8% - 11.5%10.15%
Tax rate17.1% - 32.0%24.55%
Cost of debt4.6% - 18.8%11.7%
WACC8.3% - 11.6%9.9%
WACC

CRNT WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.071.19
Additional risk adjustments0.0%0.5%
Cost of equity8.8%11.5%
Tax rate17.1%32.0%
Debt/Equity ratio
0.120.12
Cost of debt4.6%18.8%
After-tax WACC8.3%11.6%
Selected WACC9.9%

CRNT'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 CRNT:

cost_of_equity (10.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.07) + 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.