CTPL1.TA WACC - Weighted Average Cost of Capital
The WACC of ICP Israel Citrus Plantations Ltd (CTPL1.TA) is 7.7%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.4% | 11.1% |
| Tax rate | 12.3% - 17.9% | 15.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.1% - 8.2% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.8 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.4% |
| Tax rate | 12.3% | 17.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.1% | 8.2% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CTPL1.TA | ICP Israel Citrus Plantations Ltd | 0.81 | 0.09 | 0.05 |
| BYSD.TA | Bayside Land Corporation Ltd | 0.94 | 0.84 | 0.47 |
| DRSL.TA | Dorsel BAZ Ltd | 1.36 | 1.04 | 0.48 |
| GZT.TA | Gazit Globe Ltd | 5.08 | 1.36 | 0.26 |
| LVPR.TA | Levinstein Properties Ltd | 0.44 | 0.85 | 0.62 |
| OBAS.TA | Optibase Ltd | 1.92 | -0.17 | -0.06 |
| Low | High | |
| Unlevered beta | 0.26 | 0.47 |
| Relevered beta | 0.7 | 0.88 |
| Adjusted relevered beta | 0.8 | 0.92 |
CTPL1.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 CTPL1.TA:
cost_of_equity (11.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.