PLRM.TA
Palram Industries 1990 Ltd
Price:  
7,501.00 
ILS
Volume:  
40,574.00
Israel | Chemicals
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PLRM.TA WACC - Weighted Average Cost of Capital

The WACC of Palram Industries 1990 Ltd (PLRM.TA) is 10.3%.

The Cost of Equity of Palram Industries 1990 Ltd (PLRM.TA) is 10.95%.
The Cost of Debt of Palram Industries 1990 Ltd (PLRM.TA) is 4.90%.

Range Selected
Cost of equity 9.80% - 12.10% 10.95%
Tax rate 17.40% - 17.70% 17.55%
Cost of debt 4.40% - 5.40% 4.90%
WACC 9.1% - 11.4% 10.3%
WACC

PLRM.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.8 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 12.10%
Tax rate 17.40% 17.70%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.40% 5.40%
After-tax WACC 9.1% 11.4%
Selected WACC 10.3%

PLRM.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 PLRM.TA:

cost_of_equity (10.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.