MGDL.TA
Migdal Insurance and Financial Holdings Ltd
Price:  
975 
ILS
Volume:  
5,805,611
Israel | Insurance

MGDL.TA WACC - Weighted Average Cost of Capital

The WACC of Migdal Insurance and Financial Holdings Ltd (MGDL.TA) is 7.3%.

The Cost of Equity of Migdal Insurance and Financial Holdings Ltd (MGDL.TA) is 10.95%.
The Cost of Debt of Migdal Insurance and Financial Holdings Ltd (MGDL.TA) is 5%.

RangeSelected
Cost of equity8.6% - 13.3%10.95%
Tax rate32.6% - 33.7%33.15%
Cost of debt5.0% - 5.0%5%
WACC6.1% - 8.5%7.3%
WACC

MGDL.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta0.611.05
Additional risk adjustments0.0%0.5%
Cost of equity8.6%13.3%
Tax rate32.6%33.7%
Debt/Equity ratio
0.920.92
Cost of debt5.0%5.0%
After-tax WACC6.1%8.5%
Selected WACC7.3%

MGDL.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 MGDL.TA:

cost_of_equity (10.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.