HMAM.TA WACC - Weighted Average Cost of Capital

The WACC of Hamama Meir Trading 1996 Ltd (HMAM.TA) is 7.1%.

The Cost of Equity of Hamama Meir Trading 1996 Ltd (HMAM.TA) is 7.90%.

The Cost of Debt of Hamama Meir Trading 1996 Ltd (HMAM.TA) is 7.10%.

	Range	Selected
Cost of equity	7.00% - 8.80%	7.90%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	5.80% - 8.40%	7.10%
WACC	6.2% - 8.1%	7.1%

WACC

HMAM.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.35	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.00%	8.80%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.46	0.46
Cost of debt	5.80%	8.40%

After-tax WACC	6.2%	8.1%


Selected WACC	7.1%

HMAM.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 HMAM.TA:

cost_of_equity (7.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.35) + 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.