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 8.90%.

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

	Range	Selected
Cost of equity	7.70% - 10.10%	8.90%
Tax rate	-% - -%	-%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.8% - 8.4%	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	0.47	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.10%

Tax rate	-%	-%
Debt/Equity ratio	0.5	0.5
Cost of debt	5.00%	5.00%

After-tax WACC	6.8%	8.4%


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 (8.90%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.47) + 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.