VCTR.TA
Victory Supermarket Chain Ltd
Price:  
5,100.00 
ILS
Volume:  
405,887.00
Israel | Food & Staples Retailing
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VCTR.TA WACC - Weighted Average Cost of Capital

The WACC of Victory Supermarket Chain Ltd (VCTR.TA) is 7.9%.

The Cost of Equity of Victory Supermarket Chain Ltd (VCTR.TA) is 10.10%.
The Cost of Debt of Victory Supermarket Chain Ltd (VCTR.TA) is 8.65%.

Range Selected
Cost of equity 8.90% - 11.30% 10.10%
Tax rate 22.40% - 22.70% 22.55%
Cost of debt 4.00% - 13.30% 8.65%
WACC 5.1% - 10.7% 7.9%
WACC

VCTR.TA WACC calculation

Category Low High
Long-term bond rate 4.8% 5.3%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.66 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.30%
Tax rate 22.40% 22.70%
Debt/Equity ratio 1.88 1.88
Cost of debt 4.00% 13.30%
After-tax WACC 5.1% 10.7%
Selected WACC 7.9%

VCTR.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 VCTR.TA:

cost_of_equity (10.10%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.