1140.SR WACC - Weighted Average Cost of Capital
The WACC of Bank Albilad Sjsc (1140.SR) is 11.0%.
| Range | Selected | |
| Cost of equity | 9.9% - 13.2% | 11.55% |
| Tax rate | 10.3% - 10.3% | 10.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.5% - 12.5% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.65 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 13.2% |
| Tax rate | 10.3% | 10.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.5% | 12.5% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1140.SR | Bank Albilad Sjsc | 0.09 | 1.18 | 1.09 |
| 1010.SR | Riyad Bank SJSC | 0.16 | 1.31 | 1.14 |
| 1020.SR | Bank Aljazira JSC | 0.81 | 1.13 | 0.65 |
| 1030.SR | Saudi Investment Bank SJSC | 1.38 | 0.7 | 0.31 |
| 1050.SR | Banque Saudi Fransi SJSC | 1.91 | 1.19 | 0.44 |
| 1060.SR | Saudi British Bank SJSC | 0.44 | 1.37 | 0.98 |
| 1080.SR | Arab National Bank | 0.09 | 1.02 | 0.94 |
| 1150.SR | Alinma Bank SJSC | 1.67 | 1.12 | 0.45 |
| 2887.TW | Taishin Financial Holding Co Ltd | 0.74 | 0.04 | 0.03 |
| MASQ.DB | Mashreqbank PSC | 0.12 | -0.04 | -0.04 |
| Low | High | |
| Unlevered beta | 0.45 | 0.77 |
| Relevered beta | 0.48 | 0.84 |
| Adjusted relevered beta | 0.65 | 0.89 |
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.