GLPL.TA WACC - Weighted Average Cost of Capital

The WACC of Golan Plastic Products Ltd (GLPL.TA) is 7.5%.

The Cost of Equity of Golan Plastic Products Ltd (GLPL.TA) is 9.10%.

The Cost of Debt of Golan Plastic Products Ltd (GLPL.TA) is 4.45%.

	Range	Selected
Cost of equity	7.60% - 10.60%	9.10%
Tax rate	9.90% - 10.10%	10.00%
Cost of debt	4.00% - 4.90%	4.45%
WACC	6.3% - 8.6%	7.5%

WACC

GLPL.TA WACC calculation

Category	Low	High

Long-term bond rate	4.1%	4.6%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.56	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.60%	10.60%

Tax rate	9.90%	10.10%
Debt/Equity ratio	0.47	0.47
Cost of debt	4.00%	4.90%

After-tax WACC	6.3%	8.6%


Selected WACC	7.5%

GLPL.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 GLPL.TA:

cost_of_equity (9.10%) = risk_free_rate (4.35%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.