ISCN.TA
Israel Canada TR Ltd
Price:  
1,565 
ILS
Volume:  
724,826
Israel | Real Estate Management & Development

ISCN.TA WACC - Weighted Average Cost of Capital

The WACC of Israel Canada TR Ltd (ISCN.TA) is 9.8%.

The Cost of Equity of Israel Canada TR Ltd (ISCN.TA) is 11.6%.
The Cost of Debt of Israel Canada TR Ltd (ISCN.TA) is 10.4%.

RangeSelected
Cost of equity9.8% - 13.4%11.6%
Tax rate14.2% - 17.5%15.85%
Cost of debt4.2% - 16.6%10.4%
WACC5.9% - 13.6%9.8%
WACC

ISCN.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta0.81.07
Additional risk adjustments0.0%0.5%
Cost of equity9.8%13.4%
Tax rate14.2%17.5%
Debt/Equity ratio
1.611.61
Cost of debt4.2%16.6%
After-tax WACC5.9%13.6%
Selected WACC9.8%

ISCN.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 ISCN.TA:

cost_of_equity (11.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.