LAHAV.TA WACC - Weighted Average Cost of Capital

The WACC of Lahav LR Real Estate Ltd (LAHAV.TA) is 7.9%.

The Cost of Equity of Lahav LR Real Estate Ltd (LAHAV.TA) is 9.40%.

The Cost of Debt of Lahav LR Real Estate Ltd (LAHAV.TA) is 6.25%.

	Range	Selected
Cost of equity	8.30% - 10.50%	9.40%
Tax rate	0.70% - 1.00%	0.85%
Cost of debt	5.50% - 7.00%	6.25%
WACC	7.0% - 8.9%	7.9%

WACC

LAHAV.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.57	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	10.50%

Tax rate	0.70%	1.00%
Debt/Equity ratio	0.83	0.83
Cost of debt	5.50%	7.00%

After-tax WACC	7.0%	8.9%


Selected WACC	7.9%

LAHAV.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 LAHAV.TA:

cost_of_equity (9.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.57) + 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.