IDIN.TA
IDI Insurance Company Ltd
Price:  
22,300 
ILS
Volume:  
46,180
Israel | Insurance

IDIN.TA WACC - Weighted Average Cost of Capital

The WACC of IDI Insurance Company Ltd (IDIN.TA) is 9.5%.

The Cost of Equity of IDI Insurance Company Ltd (IDIN.TA) is 10.65%.
The Cost of Debt of IDI Insurance Company Ltd (IDIN.TA) is 5%.

RangeSelected
Cost of equity9.0% - 12.3%10.65%
Tax rate32.5% - 33.5%33%
Cost of debt5.0% - 5.0%5%
WACC8.1% - 10.9%9.5%
WACC

IDIN.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta0.670.9
Additional risk adjustments0.0%0.5%
Cost of equity9.0%12.3%
Tax rate32.5%33.5%
Debt/Equity ratio
0.190.19
Cost of debt5.0%5.0%
After-tax WACC8.1%10.9%
Selected WACC9.5%

IDIN.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 IDIN.TA:

cost_of_equity (10.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.