ASHO.TA WACC - Weighted Average Cost of Capital

The WACC of Ashot Ashkelon Industries Ltd (ASHO.TA) is 8.8%.

The Cost of Equity of Ashot Ashkelon Industries Ltd (ASHO.TA) is 8.80%.

The Cost of Debt of Ashot Ashkelon Industries Ltd (ASHO.TA) is 7.45%.

	Range	Selected
Cost of equity	7.70% - 9.90%	8.80%
Tax rate	5.00% - 6.20%	5.60%
Cost of debt	5.40% - 9.50%	7.45%
WACC	7.7% - 9.8%	8.8%

WACC

ASHO.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	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	9.90%

Tax rate	5.00%	6.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	5.40%	9.50%

After-tax WACC	7.7%	9.8%


Selected WACC	8.8%

ASHO.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 ASHO.TA:

cost_of_equity (8.80%) = 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.