ENRG.TA WACC - Weighted Average Cost of Capital

The WACC of Energix Renewable Energies Ltd (ENRG.TA) is 6.7%.

The Cost of Equity of Energix Renewable Energies Ltd (ENRG.TA) is 8.70%.

The Cost of Debt of Energix Renewable Energies Ltd (ENRG.TA) is 5.00%.

	Range	Selected
Cost of equity	7.30% - 10.10%	8.70%
Tax rate	7.20% - 35.90%	21.55%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.2% - 7.3%	6.7%

WACC

ENRG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.4	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	10.10%

Tax rate	7.20%	35.90%
Debt/Equity ratio	0.69	0.69
Cost of debt	5.00%	5.00%

After-tax WACC	6.2%	7.3%


Selected WACC	6.7%

ENRG.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 ENRG.TA:

cost_of_equity (8.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.4) + 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.