1050.SR
Banque Saudi Fransi SJSC
Price:  
18.28 
SAR
Volume:  
2,048,117.00
Saudi Arabia | Banks
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1050.SR WACC - Weighted Average Cost of Capital

The WACC of Banque Saudi Fransi SJSC (1050.SR) is 8.4%.

The Cost of Equity of Banque Saudi Fransi SJSC (1050.SR) is 15.45%.
The Cost of Debt of Banque Saudi Fransi SJSC (1050.SR) is 5.00%.

Range Selected
Cost of equity 12.60% - 18.30% 15.45%
Tax rate 10.30% - 10.50% 10.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.4% - 9.4% 8.4%
WACC

1050.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.1 1.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.60% 18.30%
Tax rate 10.30% 10.50%
Debt/Equity ratio 1.82 1.82
Cost of debt 5.00% 5.00%
After-tax WACC 7.4% 9.4%
Selected WACC 8.4%

1050.SR'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 1050.SR:

cost_of_equity (15.45%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.1) + 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.