HDST.TA WACC - Weighted Average Cost of Capital
The WACC of HBL Hadasit Bio Holdings Ltd (HDST.TA) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.1% - 9.8% | 8.45% |
| Tax rate | 23.0% - 23.0% | 23% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 8.9% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.4% | 3.9% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.68 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 9.8% |
| Tax rate | 23.0% | 23.0% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 8.9% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HDST.TA | HBL Hadasit Bio Holdings Ltd | 0.18 | 0.4 | 0.35 |
| 4575.T | CanBas Co Ltd | 1.06 | 1.15 | 0.63 |
| ACW.AX | Actinogen Medical Ltd | 0.01 | -0.4 | -0.4 |
| ATX.AX | Amplia Therapeutics Ltd | 0 | -0.23 | -0.23 |
| CBI.TA | Clal Biotechnology Industries Ltd | 0.75 | 0.55 | 0.35 |
| EVGN.TA | Evogene Ltd | 0.01 | 0.31 | 0.31 |
| KDST.TA | Kadimastem Ltd | 0.25 | 0.96 | 0.81 |
| KMDA.TA | Kamada Ltd | 0.02 | 0.5 | 0.5 |
| NXTG.TA | Nextage Therapeutics Ltd | 0 | 1.37 | 1.37 |
| UNVO.TA | Univo Pharmaceuticals Ltd | 8.88 | 1.49 | 0.19 |
| VBS.AX | Vectus Biosystems Ltd | 0.01 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.31 | 0.35 |
| Relevered beta | 0.52 | 0.78 |
| Adjusted relevered beta | 0.68 | 0.85 |
HDST.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 HDST.TA:
cost_of_equity (8.45%) = risk_free_rate (3.65%) + equity_risk_premium (5.90%) * adjusted_beta (0.68) + 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.