RMLI.TA WACC - Weighted Average Cost of Capital

The WACC of Rami Levi Chain Stores Hashikma Marketing 2006 Ltd (RMLI.TA) is 7.4%.

The Cost of Equity of Rami Levi Chain Stores Hashikma Marketing 2006 Ltd (RMLI.TA) is 9.20%.

The Cost of Debt of Rami Levi Chain Stores Hashikma Marketing 2006 Ltd (RMLI.TA) is 5.00%.

	Range	Selected
Cost of equity	8.20% - 10.20%	9.20%
Tax rate	23.70% - 24.50%	24.10%
Cost of debt	4.00% - 6.00%	5.00%
WACC	6.5% - 8.3%	7.4%

WACC

RMLI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.55	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.20%

Tax rate	23.70%	24.50%
Debt/Equity ratio	0.49	0.49
Cost of debt	4.00%	6.00%

After-tax WACC	6.5%	8.3%


Selected WACC	7.4%

RMLI.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 RMLI.TA:

cost_of_equity (9.20%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.55) + 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.