KRDI.TA WACC - Weighted Average Cost of Capital

The WACC of Kardan Israel Ltd (KRDI.TA) is 6.2%.

The Cost of Equity of Kardan Israel Ltd (KRDI.TA) is 8.90%.

The Cost of Debt of Kardan Israel Ltd (KRDI.TA) is 6.20%.

	Range	Selected
Cost of equity	7.70% - 10.10%	8.90%
Tax rate	19.50% - 21.10%	20.30%
Cost of debt	4.00% - 8.40%	6.20%
WACC	4.6% - 7.7%	6.2%

WACC

KRDI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.46	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.10%

Tax rate	19.50%	21.10%
Debt/Equity ratio	2.21	2.21
Cost of debt	4.00%	8.40%

After-tax WACC	4.6%	7.7%


Selected WACC	6.2%

KRDI.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 KRDI.TA:

cost_of_equity (8.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.46) + 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.