SLARL.TA
Sella Capital Real Estate Ltd
Price:  
1,026.00 
ILS
Volume:  
240,026.00
Israel | Real Estate Management & Development
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SLARL.TA WACC - Weighted Average Cost of Capital

The WACC of Sella Capital Real Estate Ltd (SLARL.TA) is 8.3%.

The Cost of Equity of Sella Capital Real Estate Ltd (SLARL.TA) is 14.25%.
The Cost of Debt of Sella Capital Real Estate Ltd (SLARL.TA) is 5.15%.

Range Selected
Cost of equity 12.40% - 16.10% 14.25%
Tax rate 23.00% - 23.00% 23.00%
Cost of debt 4.00% - 6.30% 5.15%
WACC 7.0% - 9.5% 8.3%
WACC

SLARL.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.24 1.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 16.10%
Tax rate 23.00% 23.00%
Debt/Equity ratio 1.39 1.39
Cost of debt 4.00% 6.30%
After-tax WACC 7.0% 9.5%
Selected WACC 8.3%

SLARL.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 SLARL.TA:

cost_of_equity (14.25%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.24) + 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.