HGG.TA WACC - Weighted Average Cost of Capital

The WACC of Hagag Group Real Estate Entrepreneurship Ltd (HGG.TA) is 11.4%.

The Cost of Equity of Hagag Group Real Estate Entrepreneurship Ltd (HGG.TA) is 10.80%.

The Cost of Debt of Hagag Group Real Estate Entrepreneurship Ltd (HGG.TA) is 14.05%.

	Range	Selected
Cost of equity	9.00% - 12.60%	10.80%
Tax rate	12.70% - 17.70%	15.20%
Cost of debt	6.30% - 21.80%	14.05%
WACC	6.8% - 15.9%	11.4%

WACC

HGG.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.68	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	12.60%

Tax rate	12.70%	17.70%
Debt/Equity ratio	1.63	1.63
Cost of debt	6.30%	21.80%

After-tax WACC	6.8%	15.9%


Selected WACC	11.4%

HGG.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 HGG.TA:

cost_of_equity (10.80%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.