The WACC of Israel Canada TR Ltd (ISCN.TA) is 9.8%.
Range | Selected | |
Cost of equity | 9.8% - 13.4% | 11.6% |
Tax rate | 14.2% - 17.5% | 15.85% |
Cost of debt | 4.2% - 16.6% | 10.4% |
WACC | 5.9% - 13.6% | 9.8% |
Category | Low | High |
Long-term bond rate | 4.8% | 5.3% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.8 | 1.07 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.8% | 13.4% |
Tax rate | 14.2% | 17.5% |
Debt/Equity ratio | 1.61 | 1.61 |
Cost of debt | 4.2% | 16.6% |
After-tax WACC | 5.9% | 13.6% |
Selected WACC | 9.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ISCN.TA | Israel Canada TR Ltd | 1.61 | 1.62 | 0.69 |
251.HK | S E A Holdings Ltd | 10.83 | 0.11 | 0.01 |
6958.HK | Zhenro Services Group Ltd | 2.18 | 0.7 | 0.25 |
8818.T | Keihanshin Building Co Ltd | 1.15 | 0.92 | 0.47 |
BYSD.TA | Bayside Land Corporation Ltd | 0.94 | 0.84 | 0.47 |
DRSL.TA | Dorsel BAZ Ltd | 1.36 | 1.04 | 0.49 |
GZT.TA | Gazit Globe Ltd | 5.08 | 1.36 | 0.26 |
KBC.VN | Kinhbac City Development Holding Corp | 0.5 | 1.41 | 1 |
LVPR.TA | Levinstein Properties Ltd | 0.44 | 0.85 | 0.63 |
OBAS.TA | Optibase Ltd | 1.92 | -0.17 | -0.07 |
Low | High | |
Unlevered beta | 0.39 | 0.48 |
Relevered beta | 0.7 | 1.1 |
Adjusted relevered beta | 0.8 | 1.07 |
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.