ORON.TA
Oron Group Investments & Holdings Ltd
Price:  
1,200.00 
ILS
Volume:  
17,141.00
Israel | Construction & Engineering
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ORON.TA WACC - Weighted Average Cost of Capital

The WACC of Oron Group Investments & Holdings Ltd (ORON.TA) is 8.6%.

The Cost of Equity of Oron Group Investments & Holdings Ltd (ORON.TA) is 12.20%.
The Cost of Debt of Oron Group Investments & Holdings Ltd (ORON.TA) is 5.90%.

Range Selected
Cost of equity 9.90% - 14.50% 12.20%
Tax rate 24.80% - 25.50% 25.15%
Cost of debt 5.40% - 6.40% 5.90%
WACC 7.2% - 10.0% 8.6%
WACC

ORON.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.83 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 14.50%
Tax rate 24.80% 25.50%
Debt/Equity ratio 0.86 0.86
Cost of debt 5.40% 6.40%
After-tax WACC 7.2% 10.0%
Selected WACC 8.6%

ORON.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 ORON.TA:

cost_of_equity (12.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.