PTBL.TA
Property and Building Corp Ltd
Price:  
37,460.00 
ILS
Volume:  
4,244.00
Israel | Real Estate Management & Development
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PTBL.TA WACC - Weighted Average Cost of Capital

The WACC of Property and Building Corp Ltd (PTBL.TA) is 7.6%.

The Cost of Equity of Property and Building Corp Ltd (PTBL.TA) is 23.20%.
The Cost of Debt of Property and Building Corp Ltd (PTBL.TA) is 5.45%.

Range Selected
Cost of equity 19.90% - 26.50% 23.20%
Tax rate 14.60% - 21.60% 18.10%
Cost of debt 4.30% - 6.60% 5.45%
WACC 6.5% - 8.8% 7.6%
WACC

PTBL.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 2.45 2.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.90% 26.50%
Tax rate 14.60% 21.60%
Debt/Equity ratio 4.84 4.84
Cost of debt 4.30% 6.60%
After-tax WACC 6.5% 8.8%
Selected WACC 7.6%

PTBL.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 PTBL.TA:

cost_of_equity (23.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (2.45) + 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.