PAY.BR
Payton Planar Magnetics Ltd
Price:  
6.70 
EUR
Volume:  
1,040.00
Israel | Electronic Equipment, Instruments & Components
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PAY.BR WACC - Weighted Average Cost of Capital

The WACC of Payton Planar Magnetics Ltd (PAY.BR) is 7.0%.

The Cost of Equity of Payton Planar Magnetics Ltd (PAY.BR) is 10.50%.
The Cost of Debt of Payton Planar Magnetics Ltd (PAY.BR) is 4.25%.

Range Selected
Cost of equity 8.40% - 12.60% 10.50%
Tax rate 17.60% - 17.80% 17.70%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.9% - 8.2% 7.0%
WACC

PAY.BR WACC calculation

Category Low High
Long-term bond rate 2.9% 3.4%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.93 1.25
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 12.60%
Tax rate 17.60% 17.80%
Debt/Equity ratio 1 1
Cost of debt 4.00% 4.50%
After-tax WACC 5.9% 8.2%
Selected WACC 7.0%

PAY.BR'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 PAY.BR:

cost_of_equity (10.50%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * 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.