ZUR.TA WACC - Weighted Average Cost of Capital

The WACC of Zur Shamir Holdings Ltd (ZUR.TA) is 4.7%.

The Cost of Equity of Zur Shamir Holdings Ltd (ZUR.TA) is 38.95%.

The Cost of Debt of Zur Shamir Holdings Ltd (ZUR.TA) is 5.00%.

	Range	Selected
Cost of equity	24.60% - 53.30%	38.95%
Tax rate	43.60% - 45.40%	44.50%
Cost of debt	5.00% - 5.00%	5.00%
WACC	4.0% - 5.4%	4.7%

WACC

ZUR.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	3.23	6.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.60%	53.30%

Tax rate	43.60%	45.40%
Debt/Equity ratio	17.61	17.61
Cost of debt	5.00%	5.00%

After-tax WACC	4.0%	5.4%


Selected WACC	4.7%

ZUR.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 ZUR.TA:

cost_of_equity (38.95%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (3.23) + 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.