SHNP.TA
E Schnapp and Co Works Ltd
Price:  
1,793 
ILS
Volume:  
2,187
Israel | Auto Components

SHNP.TA WACC - Weighted Average Cost of Capital

The WACC of E Schnapp and Co Works Ltd (SHNP.TA) is 7.8%.

The Cost of Equity of E Schnapp and Co Works Ltd (SHNP.TA) is 9.05%.
The Cost of Debt of E Schnapp and Co Works Ltd (SHNP.TA) is 4.95%.

RangeSelected
Cost of equity7.8% - 10.3%9.05%
Tax rate22.3% - 23.9%23.1%
Cost of debt4.0% - 5.9%4.95%
WACC6.7% - 9.0%7.8%
WACC

SHNP.TA WACC calculation

CategoryLowHigh
Long-term bond rate4.8%5.3%
Equity market risk premium6.1%7.1%
Adjusted beta0.480.62
Additional risk adjustments0.0%0.5%
Cost of equity7.8%10.3%
Tax rate22.3%23.9%
Debt/Equity ratio
0.290.29
Cost of debt4.0%5.9%
After-tax WACC6.7%9.0%
Selected WACC7.8%

SHNP.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 SHNP.TA:

cost_of_equity (9.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.