MISH.TA WACC - Weighted Average Cost of Capital

The WACC of Mivtach Shamir Holdings Ltd (MISH.TA) is 10.4%.

The Cost of Equity of Mivtach Shamir Holdings Ltd (MISH.TA) is 14.65%.

The Cost of Debt of Mivtach Shamir Holdings Ltd (MISH.TA) is 6.20%.

	Range	Selected
Cost of equity	13.10% - 16.20%	14.65%
Tax rate	16.60% - 20.80%	18.70%
Cost of debt	4.00% - 8.40%	6.20%
WACC	8.8% - 12.0%	10.4%

WACC

MISH.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.34	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	16.20%

Tax rate	16.60%	20.80%
Debt/Equity ratio	0.78	0.78
Cost of debt	4.00%	8.40%

After-tax WACC	8.8%	12.0%


Selected WACC	10.4%

MISH.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 MISH.TA:

cost_of_equity (14.65%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.34) + 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.