EMTC.TA WACC - Weighted Average Cost of Capital

The WACC of Elbit Medical Technologies Ltd (EMTC.TA) is 7.2%.

The Cost of Equity of Elbit Medical Technologies Ltd (EMTC.TA) is 7.90%.

The Cost of Debt of Elbit Medical Technologies Ltd (EMTC.TA) is 8.20%.

	Range	Selected
Cost of equity	6.40% - 9.40%	7.90%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	7.50% - 8.90%	8.20%
WACC	6.2% - 8.3%	7.2%

WACC

EMTC.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.64	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	9.40%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.78	0.78
Cost of debt	7.50%	8.90%

After-tax WACC	6.2%	8.3%


Selected WACC	7.2%

EMTC.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 EMTC.TA:

cost_of_equity (7.90%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (0.64) + 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.