GIVO.L.TA WACC - Weighted Average Cost of Capital

The WACC of Givot Olam Oil Exploration LP (1993) (GIVO.L.TA) is 8.1%.

The Cost of Equity of Givot Olam Oil Exploration LP (1993) (GIVO.L.TA) is 8.20%.

The Cost of Debt of Givot Olam Oil Exploration LP (1993) (GIVO.L.TA) is 5.50%.

	Range	Selected
Cost of equity	6.80% - 9.60%	8.20%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.7% - 9.5%	8.1%

WACC

GIVO.L.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	4.9%	5.9%
Adjusted beta	0.78	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	9.60%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	7.00%

After-tax WACC	6.7%	9.5%


Selected WACC	8.1%

GIVO.L.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 GIVO.L.TA:

cost_of_equity (8.20%) = risk_free_rate (3.25%) + equity_risk_premium (5.40%) * adjusted_beta (0.78) + 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.