TKUN.TA
Tikun Olam Cannbit Pharmaceuticals Ltd
Price:  
40.20 
ILS
Volume:  
11,440.00
Israel | Pharmaceuticals
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TKUN.TA WACC - Weighted Average Cost of Capital

The WACC of Tikun Olam Cannbit Pharmaceuticals Ltd (TKUN.TA) is 7.6%.

The Cost of Equity of Tikun Olam Cannbit Pharmaceuticals Ltd (TKUN.TA) is 8.85%.
The Cost of Debt of Tikun Olam Cannbit Pharmaceuticals Ltd (TKUN.TA) is 5.00%.

Range Selected
Cost of equity 7.80% - 9.90% 8.85%
Tax rate -% - -% -%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.9% - 8.3% 7.6%
WACC

TKUN.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.49 0.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 9.90%
Tax rate -% -%
Debt/Equity ratio 0.49 0.49
Cost of debt 5.00% 5.00%
After-tax WACC 6.9% 8.3%
Selected WACC 7.6%

TKUN.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 TKUN.TA:

cost_of_equity (8.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.49) + 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.