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.