KLIL.TA
Klil Industries Ltd
Price:  
25,940.00 
ILS
Volume:  
1,021.00
Israel | Building Products
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KLIL.TA WACC - Weighted Average Cost of Capital

The WACC of Klil Industries Ltd (KLIL.TA) is 9.9%.

The Cost of Equity of Klil Industries Ltd (KLIL.TA) is 10.00%.
The Cost of Debt of Klil Industries Ltd (KLIL.TA) is 4.90%.

Range Selected
Cost of equity 8.70% - 11.30% 10.00%
Tax rate 23.60% - 25.30% 24.45%
Cost of debt 4.00% - 5.80% 4.90%
WACC 8.6% - 11.2% 9.9%
WACC

KLIL.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.64 0.77
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.30%
Tax rate 23.60% 25.30%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 5.80%
After-tax WACC 8.6% 11.2%
Selected WACC 9.9%

KLIL.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 KLIL.TA:

cost_of_equity (10.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.