CLIS.TA WACC - Weighted Average Cost of Capital

The WACC of Clal Insurance Enterprises Holdings Ltd (CLIS.TA) is 10.1%.

The Cost of Equity of Clal Insurance Enterprises Holdings Ltd (CLIS.TA) is 15.45%.

The Cost of Debt of Clal Insurance Enterprises Holdings Ltd (CLIS.TA) is 5.00%.

	Range	Selected
Cost of equity	12.40% - 18.50%	15.45%
Tax rate	32.50% - 33.50%	33.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.4% - 11.7%	10.1%

WACC

CLIS.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.24	1.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	18.50%

Tax rate	32.50%	33.50%
Debt/Equity ratio	0.8	0.8
Cost of debt	5.00%	5.00%

After-tax WACC	8.4%	11.7%


Selected WACC	10.1%

CLIS.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 CLIS.TA:

cost_of_equity (15.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.24) + 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.