REKA.TA WACC - Weighted Average Cost of Capital

The WACC of Rekah Pharmaceutical Industry Ltd (REKA.TA) is 8.0%.

The Cost of Equity of Rekah Pharmaceutical Industry Ltd (REKA.TA) is 12.45%.

The Cost of Debt of Rekah Pharmaceutical Industry Ltd (REKA.TA) is 5.50%.

	Range	Selected
Cost of equity	10.60% - 14.30%	12.45%
Tax rate	18.70% - 37.60%	28.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.8% - 9.2%	8.0%

WACC

REKA.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.94	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	14.30%

Tax rate	18.70%	37.60%
Debt/Equity ratio	1.05	1.05
Cost of debt	4.00%	7.00%

After-tax WACC	6.8%	9.2%


Selected WACC	8.0%

REKA.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 REKA.TA:

cost_of_equity (12.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.