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 12.45%.

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

	Range	Selected
Cost of equity	11.40% - 13.50%	12.45%
Tax rate	11.90% - 16.00%	13.95%
Cost of debt	5.70% - 24.80%	15.25%
WACC	9.1% - 16.2%	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	1.07	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	13.50%

Tax rate	11.90%	16.00%
Debt/Equity ratio	0.58	0.58
Cost of debt	5.70%	24.80%

After-tax WACC	9.1%	16.2%


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 (12.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.07) + 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.