ILDC.TA WACC - Weighted Average Cost of Capital
The WACC of Israel Land Development Co Ltd (ILDC.TA) is 8.2%.
| Range | Selected | |
| Cost of equity | 8.6% - 12.1% | 10.35% |
| Tax rate | 23.1% - 25.7% | 24.4% |
| Cost of debt | 4.0% - 16.6% | 10.3% |
| WACC | 4.0% - 12.3% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 12.1% |
| Tax rate | 23.1% | 25.7% |
| Debt/Equity ratio | 4.66 | 4.66 |
| Cost of debt | 4.0% | 16.6% |
| After-tax WACC | 4.0% | 12.3% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ILDC.TA | Israel Land Development Co Ltd | 4.66 | 1.58 | 0.35 |
| 8596.T | Kyushu Leasing Service Co Ltd | 4.62 | 0.93 | 0.21 |
| 9679.T | Horai Co Ltd | 0.46 | 0.05 | 0.04 |
| GOW.AX | Gowing Bros Ltd | 0.84 | 0.3 | 0.19 |
| IGBB.KL | Igb Bhd | 0.98 | 0.27 | 0.15 |
| LVPR.TA | Levinstein Properties Ltd | 0.44 | 0.85 | 0.64 |
| MULPHA.KL | Mulpha International Bhd | 2.39 | 0.06 | 0.02 |
| OBAS.TA | Optibase Ltd | 1.92 | -0.17 | -0.07 |
| SHN.VN | Ha Noi Investment General Corp | 4.52 | 0.34 | 0.08 |
| SPGE.TA | Supergas Energy Ltd | 0.7 | 1.03 | 0.67 |
| Low | High | |
| Unlevered beta | 0.12 | 0.19 |
| Relevered beta | 0.42 | 0.81 |
| Adjusted relevered beta | 0.61 | 0.87 |
ILDC.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 ILDC.TA:
cost_of_equity (10.35%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.