MVNE.TA WACC - Weighted Average Cost of Capital

The WACC of Mivne Real Estate KD Ltd (MVNE.TA) is 7.7%.

The Cost of Equity of Mivne Real Estate KD Ltd (MVNE.TA) is 11.65%.

The Cost of Debt of Mivne Real Estate KD Ltd (MVNE.TA) is 5.15%.

	Range	Selected
Cost of equity	10.60% - 12.70%	11.65%
Tax rate	21.00% - 21.90%	21.45%
Cost of debt	4.00% - 6.30%	5.15%
WACC	6.7% - 8.7%	7.7%

WACC

MVNE.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	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	12.70%

Tax rate	21.00%	21.90%
Debt/Equity ratio	1.08	1.08
Cost of debt	4.00%	6.30%

After-tax WACC	6.7%	8.7%


Selected WACC	7.7%

MVNE.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 MVNE.TA:

cost_of_equity (11.65%) = 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.