MCRNT.TA WACC - Weighted Average Cost of Capital

The WACC of Micronet Ltd (MCRNT.TA) is 9.3%.

The Cost of Equity of Micronet Ltd (MCRNT.TA) is 11.60%.

The Cost of Debt of Micronet Ltd (MCRNT.TA) is 6.95%.

	Range	Selected
Cost of equity	9.40% - 13.80%	11.60%
Tax rate	0.20% - 0.60%	0.40%
Cost of debt	6.90% - 7.00%	6.95%
WACC	8.2% - 10.4%	9.3%

WACC

MCRNT.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.75	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	13.80%

Tax rate	0.20%	0.60%
Debt/Equity ratio	1	1
Cost of debt	6.90%	7.00%

After-tax WACC	8.2%	10.4%


Selected WACC	9.3%

MCRNT.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 MCRNT.TA:

cost_of_equity (11.60%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.