LAPD.TA WACC - Weighted Average Cost of Capital

The WACC of Lapidoth Capital Ltd (LAPD.TA) is 9.3%.

The Cost of Equity of Lapidoth Capital Ltd (LAPD.TA) is 11.90%.

The Cost of Debt of Lapidoth Capital Ltd (LAPD.TA) is 5.00%.

	Range	Selected
Cost of equity	10.50% - 13.30%	11.90%
Tax rate	19.70% - 20.90%	20.30%
Cost of debt	4.00% - 6.00%	5.00%
WACC	8.1% - 10.4%	9.3%

WACC

LAPD.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.93	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.30%

Tax rate	19.70%	20.90%
Debt/Equity ratio	0.5	0.5
Cost of debt	4.00%	6.00%

After-tax WACC	8.1%	10.4%


Selected WACC	9.3%

LAPD.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 LAPD.TA:

cost_of_equity (11.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.