SANO1.TA
Sano Brunos Enterprises Ltd
Price:  
33,590 
ILS
Volume:  
889
Israel | Household Products

SANO1.TA WACC - Weighted Average Cost of Capital

The WACC of Sano Brunos Enterprises Ltd (SANO1.TA) is 11.4%.

The Cost of Equity of Sano Brunos Enterprises Ltd (SANO1.TA) is 11.45%.
The Cost of Debt of Sano Brunos Enterprises Ltd (SANO1.TA) is 4.7%.

RangeSelected
Cost of equity10.2% - 12.7%11.45%
Tax rate22.2% - 22.3%22.25%
Cost of debt4.0% - 5.4%4.7%
WACC10.1% - 12.6%11.4%
WACC

SANO1.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta0.870.96
Additional risk adjustments0.0%0.5%
Cost of equity10.2%12.7%
Tax rate22.2%22.3%
Debt/Equity ratio
0.010.01
Cost of debt4.0%5.4%
After-tax WACC10.1%12.6%
Selected WACC11.4%

SANO1.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 SANO1.TA:

cost_of_equity (11.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.