PIU.TA WACC - Weighted Average Cost of Capital
The WACC of Poalim IBI Managing & Underwriting Ltd (PIU.TA) is 11.3%.
| Range | Selected | |
| Cost of equity | 9.7% - 13.1% | 11.4% |
| Tax rate | 25.4% - 25.8% | 25.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.6% - 13.0% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 6.6% | 7.6% |
| Adjusted beta | 0.89 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.7% | 13.1% |
| Tax rate | 25.4% | 25.8% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.6% | 13.0% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PIU.TA | Poalim IBI Managing & Underwriting Ltd | 0.02 | 1.04 | 1.03 |
| 5PAISA.NS | 5Paisa Capital Ltd | 0.27 | 1.3 | 1.08 |
| 8705.T | Okato Nissan Securities Holdings Inc | 0.63 | 0.77 | 0.52 |
| AGR.VN | Agribank Securities Joint-Stock Corp | 0.27 | 1.5 | 1.24 |
| BSI.VN | BIDV Securities JSC | 0.48 | 1.23 | 0.9 |
| BVS.VN | Bao Viet Securities JSC | 1.22 | 1.66 | 0.87 |
| FTS.VN | FPT Securities JSC | 0.23 | 1.48 | 1.26 |
| PANS.JK | Panin Sekuritas Tbk PT | 0.04 | 0.27 | 0.26 |
| TVS.VN | Thien Viet Securities JSC | 1.58 | 1.35 | 0.62 |
| VDS.VN | Viet Dragon Securities Corp | 0.98 | 1.78 | 1.03 |
| Low | High | |
| Unlevered beta | 0.89 | 1.03 |
| Relevered beta | 0.84 | 1.13 |
| Adjusted relevered beta | 0.89 | 1.09 |
PIU.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 PIU.TA:
cost_of_equity (11.40%) = risk_free_rate (4.15%) + equity_risk_premium (7.10%) * adjusted_beta (0.89) + 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.