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 11.75%.

The Cost of Debt of Israel Canada TR Ltd (ISCN.TA) is 10.40%.

	Range	Selected
Cost of equity	9.80% - 13.70%	11.75%
Tax rate	14.20% - 17.50%	15.85%
Cost of debt	4.20% - 16.60%	10.40%
WACC	5.9% - 13.7%	9.8%

WACC

ISCN.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	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.70%

Tax rate	14.20%	17.50%
Debt/Equity ratio	1.65	1.65
Cost of debt	4.20%	16.60%

After-tax WACC	5.9%	13.7%


Selected WACC	9.8%

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 (11.75%) = 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.