PTNR.TA WACC - Weighted Average Cost of Capital

The WACC of Partner Communications Company Ltd (PTNR.TA) is 7.4%.

The Cost of Equity of Partner Communications Company Ltd (PTNR.TA) is 8.70%.

The Cost of Debt of Partner Communications Company Ltd (PTNR.TA) is 4.95%.

	Range	Selected
Cost of equity	7.90% - 9.50%	8.70%
Tax rate	25.20% - 30.80%	28.00%
Cost of debt	4.00% - 5.90%	4.95%
WACC	6.6% - 8.2%	7.4%

WACC

PTNR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.5	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	9.50%

Tax rate	25.20%	30.80%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.00%	5.90%

After-tax WACC	6.6%	8.2%


Selected WACC	7.4%

PTNR.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 PTNR.TA:

cost_of_equity (8.70%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.