GAON.TA WACC - Weighted Average Cost of Capital
The WACC of B Gaon Holdings Ltd (GAON.TA) is 5.1%.
| Range | Selected | |
| Cost of equity | 12.6% - 16.4% | 14.5% |
| Tax rate | 33.2% - 45.5% | 39.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 5.3% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 1.69 | 1.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 16.4% |
| Tax rate | 33.2% | 45.5% |
| Debt/Equity ratio | 4.41 | 4.41 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 5.3% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GAON.TA | B Gaon Holdings Ltd | 4.41 | 0.16 | 0.04 |
| 4130.SR | Al-Baha Investment & Development Company SJSC | 0.08 | -0.28 | -0.27 |
| ELRN.TA | Elron Electronic Industries Ltd | 0.05 | 0.42 | 0.4 |
| EMDV.TA | Emilia Development OFG Ltd | 1.25 | 0.52 | 0.29 |
| ILDC.TA | Israel Land Development Co Ltd | 4.66 | 1.58 | 0.41 |
| KRDI.TA | Kardan Israel Ltd | 1.72 | 0.83 | 0.4 |
| MISH.TA | Mivtach Shamir Holdings Ltd | 0.78 | 0.94 | 0.63 |
| MPR.AX | Mpower Group Ltd | 7.96 | 0.82 | 0.14 |
| OGC.VN | Ocean Group JSC | 1.12 | 0.93 | 0.55 |
| SHN.VN | Ha Noi Investment General Corp | 4.52 | 0.34 | 0.09 |
| Low | High | |
| Unlevered beta | 0.23 | 0.4 |
| Relevered beta | 2.03 | 2.3 |
| Adjusted relevered beta | 1.69 | 1.87 |
GAON.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 GAON.TA:
cost_of_equity (14.50%) = risk_free_rate (3.65%) + equity_risk_premium (5.90%) * adjusted_beta (1.69) + 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.