GOLF.TA
Golf & Co Group Ltd
Price:  
691.40 
ILS
Volume:  
11,325.00
Israel | Specialty Retail
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GOLF.TA WACC - Weighted Average Cost of Capital

The WACC of Golf & Co Group Ltd (GOLF.TA) is 8.2%.

The Cost of Equity of Golf & Co Group Ltd (GOLF.TA) is 14.20%.
The Cost of Debt of Golf & Co Group Ltd (GOLF.TA) is 5.30%.

Range Selected
Cost of equity 11.80% - 16.60% 14.20%
Tax rate 8.70% - 12.80% 10.75%
Cost of debt 4.00% - 6.60% 5.30%
WACC 6.7% - 9.8% 8.2%
WACC

GOLF.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.14 1.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 16.60%
Tax rate 8.70% 12.80%
Debt/Equity ratio 1.69 1.69
Cost of debt 4.00% 6.60%
After-tax WACC 6.7% 9.8%
Selected WACC 8.2%

GOLF.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 GOLF.TA:

cost_of_equity (14.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.14) + 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.