The WACC of Hamashbir 365 Holdings Ltd (MSBI.TA) is 5.8%.
| Range | Selected | |
| Cost of equity | 11.90% - 22.70% | 17.30% |
| Tax rate | 26.00% - 30.90% | 28.45% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 5.0% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.15 | 2.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.90% | 22.70% |
| Tax rate | 26.00% | 30.90% |
| Debt/Equity ratio | 5.2 | 5.2 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 5.0% | 6.6% |
| Selected WACC | 5.8% | |
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 MSBI.TA:
cost_of_equity (17.30%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.15) + 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.