DLRL.TA WACC - Weighted Average Cost of Capital

The WACC of Delek Royalties 2012 Ltd (DLRL.TA) is 8.0%.

The Cost of Equity of Delek Royalties 2012 Ltd (DLRL.TA) is 15.20%.

The Cost of Debt of Delek Royalties 2012 Ltd (DLRL.TA) is 5.00%.

	Range	Selected
Cost of equity	10.80% - 19.60%	15.20%
Tax rate	14.40% - 18.60%	16.50%
Cost of debt	4.70% - 5.30%	5.00%
WACC	6.4% - 9.6%	8.0%

WACC

DLRL.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1.44	2.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	19.60%

Tax rate	14.40%	18.60%
Debt/Equity ratio	1.9	1.9
Cost of debt	4.70%	5.30%

After-tax WACC	6.4%	9.6%


Selected WACC	8.0%

DLRL.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 DLRL.TA:

cost_of_equity (15.20%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (1.44) + 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.