PTNR.TA WACC - Weighted Average Cost of Capital
The WACC of Partner Communications Company Ltd (PTNR.TA) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.9% - 9.5% | 8.7% |
| Tax rate | 25.2% - 30.8% | 28% |
| Cost of debt | 4.0% - 5.9% | 4.95% |
| WACC | 6.6% - 8.1% | 7.4% |
| 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 | 7.9% | 9.5% |
| Tax rate | 25.2% | 30.8% |
| Debt/Equity ratio | 0.35 | 0.35 |
| Cost of debt | 4.0% | 5.9% |
| After-tax WACC | 6.6% | 8.1% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| PTNR.TA | Partner Communications Company Ltd | 0.35 | 1.59 | 1.26 |
| 215.HK | Hutchison Telecommunications Hong Kong Holdings Ltd | 0.1 | 0.25 | 0.23 |
| 315.HK | Smartone Telecommunications Holdings Ltd | 0.2 | 0.25 | 0.22 |
| 9436.T | Okinawa Cellular Telephone Co | 0 | 0.32 | 0.32 |
| BAI.SI | Sevak Ltd | 0.01 | -1.27 | -1.25 |
| CC3.SI | StarHub Ltd | 0.64 | 0.28 | 0.19 |
| EXCL.JK | XL Axiata Tbk PT | 1.15 | 0.37 | 0.2 |
| FREN.JK | Smartfren Telecom Tbk PT | 1.65 | 0.02 | 0.01 |
| RCOM.NS | Reliance Communications Ltd | 115.39 | 0.23 | 0 |
| TTML.NS | Tata Teleservices (Maharashtra) Ltd | 1.43 | 1.25 | 0.61 |
| VFQS.QA | Vodafone Qatar PQSC | 0.08 | 0.78 | 0.74 |
| Low | High | |
| Unlevered beta | 0.2 | 0.23 |
| Relevered beta | 0.25 | 0.28 |
| Adjusted relevered beta | 0.5 | 0.52 |
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.