GILT WACC - Weighted Average Cost of Capital

The WACC of Gilat Satellite Networks Ltd (GILT) is 9.0%.

The Cost of Equity of Gilat Satellite Networks Ltd (GILT) is 9.05%.

The Cost of Debt of Gilat Satellite Networks Ltd (GILT) is 4.50%.

	Range	Selected
Cost of equity	7.80% - 10.30%	9.05%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.50% - 4.50%	4.50%
WACC	7.7% - 10.2%	9.0%

WACC

GILT WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.85	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	10.30%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.50%	4.50%

After-tax WACC	7.7%	10.2%


Selected WACC	9.0%

GILT'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 GILT:

cost_of_equity (9.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.85) + 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.