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Alpha Tau Medical Ltd. Ordinary Shares (DRTS) — WACC Analysis

WACC Breakdown

Alpha Tau Medical Ltd. Ordinary Shares (DRTS) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 7.9%, derived from a beta of 0.63 and a risk-free rate of 4.7%. The after-tax cost of debt is 6.6%. The capital structure is 99.6% equity and 0.4% debt.

Interpretation

A WACC of 7.9% suggests that the market views Alpha Tau Medical Ltd. Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare DRTS's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 0.63 reflects the stock's volatility relative to the broader market.

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VALUATION

DRTS WACC: 7.85% for Alpha Tau Medical Ltd. Ordinary Shares

Current inputs imply a 7.86% cost of equity and a 6.61% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Alpha Tau Medical Ltd. Ordinary Shares Common Stock (DRTS) WACC Results
Weighted Average Cost of Capital
7.85%
Cost of Equity
7.86%
Risk-Free Rate4.67%
Beta0.63
Market Risk Premium4.23%
Cost of Debt
6.61%
Pre-Tax Cost of Debt6.61%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 99.62%($1369.60M)
Debt: 0.38%($5.25M)
Equity Component
7.83%
99.62% × 7.86%
Debt Component
0.03%
0.38% × 6.61%

Alpha Tau Medical Ltd. Ordinary Shares (DRTS) WACC in context

Alpha Tau Medical Ltd. Ordinary Shares (DRTS) currently screens with an estimated WACC of 7.85%. That blends a 7.86% cost of equity, a 6.61% pre-tax cost of debt, and a 99.62% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What DRTS WACC implies

A 7.85% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates DRTS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.63 and equity accounts for 99.62% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.