TLRD.TA WACC - Weighted Average Cost of Capital

The WACC of Telrad Networks Ltd (TLRD.TA) is 12.6%.

The Cost of Equity of Telrad Networks Ltd (TLRD.TA) is 12.40%.

The Cost of Debt of Telrad Networks Ltd (TLRD.TA) is 15.25%.

	Range	Selected
Cost of equity	11.20% - 13.60%	12.40%
Tax rate	11.90% - 16.00%	13.95%
Cost of debt	5.70% - 24.80%	15.25%
WACC	8.9% - 16.3%	12.6%

WACC

TLRD.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.04	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	13.60%

Tax rate	11.90%	16.00%
Debt/Equity ratio	0.59	0.59
Cost of debt	5.70%	24.80%

After-tax WACC	8.9%	16.3%


Selected WACC	12.6%

TLRD.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 TLRD.TA:

cost_of_equity (12.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.04) + 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.