1140.SR
Bank Albilad Sjsc
Price:  
26 
SAR
Volume:  
1,097,389
Saudi Arabia | Banks

1140.SR WACC - Weighted Average Cost of Capital

The WACC of Bank Albilad Sjsc (1140.SR) is 11.0%.

The Cost of Equity of Bank Albilad Sjsc (1140.SR) is 11.55%.
The Cost of Debt of Bank Albilad Sjsc (1140.SR) is 5%.

RangeSelected
Cost of equity9.9% - 13.2%11.55%
Tax rate10.3% - 10.3%10.3%
Cost of debt5.0% - 5.0%5%
WACC9.5% - 12.5%11.0%
WACC

1140.SR WACC calculation

CategoryLowHigh
Long-term bond rate5.9%6.4%
Equity market risk premium6.1%7.1%
Adjusted beta0.650.89
Additional risk adjustments0.0%0.5%
Cost of equity9.9%13.2%
Tax rate10.3%10.3%
Debt/Equity ratio
0.090.09
Cost of debt5.0%5.0%
After-tax WACC9.5%12.5%
Selected WACC11.0%

1140.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 1140.SR:

cost_of_equity (11.55%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.