HARL.TA WACC - Weighted Average Cost of Capital
The WACC of Harel Insurance Investments and Financial Services Ltd (HARL.TA) is 7.5%.
| Range | Selected | |
| Cost of equity | 8.7% - 13.7% | 11.2% |
| Tax rate | 28.8% - 29.1% | 28.95% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.2% - 8.8% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.63 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 13.7% |
| Tax rate | 28.8% | 29.1% |
| Debt/Equity ratio | 0.92 | 0.92 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.2% | 8.8% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HARL.TA | Harel Insurance Investments and Financial Services Ltd | 0.92 | 1.94 | 1.18 |
| 600291.SS | Xishui Strong Year Co Ltd Inner Mongolia | 0.16 | 1.63 | 1.46 |
| 662.HK | Asia Financial Holdings Ltd | 0 | 0.3 | 0.3 |
| 8010.SR | Company for Cooperative Insurance SJSC | 0 | 0.84 | 0.84 |
| 8230.SR | Al Rajhi Company for Cooperative Insurance SJSC | 0 | 1.78 | 1.78 |
| ALLIANZ.KL | Allianz Malaysia Bhd | 0.01 | 0.6 | 0.6 |
| BVH.VN | BaoViet Holdings | 0.08 | 1.6 | 1.51 |
| RGSS.ME | SK Rosgosstrakh PAO | 0.01 | 0.12 | 0.12 |
| SMMA.JK | Sinar Mas Multiartha Tbk PT | 0.11 | 0.05 | 0.05 |
| TAKAFUL.KL | Syarikat Takaful Malaysia Keluarga Bhd | 0 | 0.22 | 0.22 |
| TGH.BK | Thai Group Holdings PCL | 2.27 | 0.2 | 0.08 |
| Low | High | |
| Unlevered beta | 0.3 | 0.84 |
| Relevered beta | 0.45 | 1.15 |
| Adjusted relevered beta | 0.63 | 1.1 |
HARL.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 HARL.TA:
cost_of_equity (11.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.63) + 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.