OBAS.TA WACC - Weighted Average Cost of Capital

The WACC of Optibase Ltd (OBAS.TA) is 6.8%.

The Cost of Equity of Optibase Ltd (OBAS.TA) is 10.40%.

The Cost of Debt of Optibase Ltd (OBAS.TA) is 8.50%.

	Range	Selected
Cost of equity	9.00% - 11.80%	10.40%
Tax rate	39.90% - 42.30%	41.10%
Cost of debt	4.00% - 13.00%	8.50%
WACC	4.7% - 8.9%	6.8%

WACC

OBAS.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1.11	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.80%

Tax rate	39.90%	42.30%
Debt/Equity ratio	1.92	1.92
Cost of debt	4.00%	13.00%

After-tax WACC	4.7%	8.9%


Selected WACC	6.8%

OBAS.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 OBAS.TA:

cost_of_equity (10.40%) = risk_free_rate (3.25%) + equity_risk_premium (5.90%) * adjusted_beta (1.11) + 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.