TFRLF.TA WACC - Weighted Average Cost of Capital

The WACC of Tefron Ltd (TFRLF.TA) is 9.8%.

The Cost of Equity of Tefron Ltd (TFRLF.TA) is 10.05%.

The Cost of Debt of Tefron Ltd (TFRLF.TA) is 7.20%.

	Range	Selected
Cost of equity	8.70% - 11.40%	10.05%
Tax rate	23.50% - 24.20%	23.85%
Cost of debt	5.80% - 8.60%	7.20%
WACC	8.5% - 11.2%	9.8%

WACC

TFRLF.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	5.6%	6.6%
Adjusted beta	0.68	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	11.40%

Tax rate	23.50%	24.20%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.80%	8.60%

After-tax WACC	8.5%	11.2%


Selected WACC	9.8%

TFRLF.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 TFRLF.TA:

cost_of_equity (10.05%) = risk_free_rate (5.05%) + equity_risk_premium (6.10%) * adjusted_beta (0.68) + 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.