DANE.TA WACC - Weighted Average Cost of Capital

The WACC of Danel Adir Yeoshua Ltd (DANE.TA) is 9.4%.

The Cost of Equity of Danel Adir Yeoshua Ltd (DANE.TA) is 10.45%.

The Cost of Debt of Danel Adir Yeoshua Ltd (DANE.TA) is 4.70%.

	Range	Selected
Cost of equity	9.30% - 11.60%	10.45%
Tax rate	24.50% - 45.30%	34.90%
Cost of debt	4.00% - 5.40%	4.70%
WACC	8.4% - 10.4%	9.4%

WACC

DANE.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.73	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.60%

Tax rate	24.50%	45.30%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	5.40%

After-tax WACC	8.4%	10.4%


Selected WACC	9.4%

DANE.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 DANE.TA:

cost_of_equity (10.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.