KAFR.TA WACC - Weighted Average Cost of Capital

The WACC of Kafrit Industries 1993 Ltd (KAFR.TA) is 9.4%.

The Cost of Equity of Kafrit Industries 1993 Ltd (KAFR.TA) is 12.60%.

The Cost of Debt of Kafrit Industries 1993 Ltd (KAFR.TA) is 5.40%.

	Range	Selected
Cost of equity	11.40% - 13.80%	12.60%
Tax rate	28.00% - 28.80%	28.40%
Cost of debt	4.80% - 6.00%	5.40%
WACC	8.5% - 10.3%	9.4%

WACC

KAFR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.06	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	13.80%

Tax rate	28.00%	28.80%
Debt/Equity ratio	0.58	0.58
Cost of debt	4.80%	6.00%

After-tax WACC	8.5%	10.3%


Selected WACC	9.4%

KAFR.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 KAFR.TA:

cost_of_equity (12.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.