INCR.TA WACC - Weighted Average Cost of Capital

The WACC of InterCure Ltd (INCR.TA) is 24.8%.

The Cost of Equity of InterCure Ltd (INCR.TA) is 11.25%.

The Cost of Debt of InterCure Ltd (INCR.TA) is 42.15%.

	Range	Selected
Cost of equity	9.80% - 12.70%	11.25%
Tax rate	5.00% - 7.70%	6.35%
Cost of debt	7.00% - 77.30%	42.15%
WACC	8.3% - 41.3%	24.8%

WACC

INCR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.81	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.70%

Tax rate	5.00%	7.70%
Debt/Equity ratio	0.95	0.95
Cost of debt	7.00%	77.30%

After-tax WACC	8.3%	41.3%


Selected WACC	24.8%

INCR.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 INCR.TA:

cost_of_equity (11.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.