IBI.TA
IBI Investment House Ltd
Price:  
24,840.00 
ILA
Volume:  
10,834.00
Israel | Capital Markets
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IBI.TA WACC - Weighted Average Cost of Capital

The WACC of IBI Investment House Ltd (IBI.TA) is 11.4%.

The Cost of Equity of IBI Investment House Ltd (IBI.TA) is 11.85%.
The Cost of Debt of IBI Investment House Ltd (IBI.TA) is 5.75%.

Range Selected
Cost of equity 10.40% - 13.30% 11.85%
Tax rate 25.00% - 27.30% 26.15%
Cost of debt 5.40% - 6.10% 5.75%
WACC 10.1% - 12.8% 11.4%
WACC

IBI.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.91 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.40% 13.30%
Tax rate 25.00% 27.30%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.40% 6.10%
After-tax WACC 10.1% 12.8%
Selected WACC 11.4%

IBI.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 IBI.TA:

cost_of_equity (11.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.