TDGN-L.TA WACC - Weighted Average Cost of Capital

The WACC of Tadir Gan Precision Products 1993 Ltd (TDGN-L.TA) is 6.5%.

The Cost of Equity of Tadir Gan Precision Products 1993 Ltd (TDGN-L.TA) is 7.15%.

The Cost of Debt of Tadir Gan Precision Products 1993 Ltd (TDGN-L.TA) is 5.00%.

	Range	Selected
Cost of equity	6.00% - 8.30%	7.15%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	5.6% - 7.4%	6.5%

WACC

TDGN-L.TA WACC calculation

Category	Low	High

Long-term bond rate	3.0%	3.5%
Equity market risk premium	4.9%	5.9%
Adjusted beta	0.61	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.00%	8.30%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.25	0.25
Cost of debt	5.00%	5.00%

After-tax WACC	5.6%	7.4%


Selected WACC	6.5%

TDGN-L.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 TDGN-L.TA:

cost_of_equity (7.15%) = risk_free_rate (3.25%) + equity_risk_premium (5.40%) * adjusted_beta (0.61) + 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.