1180.SR
National Commercial Bank SJSC
Price:  
36.00 
SAR
Volume:  
6,359,012.00
Saudi Arabia | Banks
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1180.SR WACC - Weighted Average Cost of Capital

The WACC of National Commercial Bank SJSC (1180.SR) is 10.0%.

The Cost of Equity of National Commercial Bank SJSC (1180.SR) is 15.00%.
The Cost of Debt of National Commercial Bank SJSC (1180.SR) is 5.00%.

Range Selected
Cost of equity 12.80% - 17.20% 15.00%
Tax rate 11.10% - 11.50% 11.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.9% - 11.2% 10.0%
WACC

1180.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.12 1.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 17.20%
Tax rate 11.10% 11.50%
Debt/Equity ratio 0.89 0.89
Cost of debt 5.00% 5.00%
After-tax WACC 8.9% 11.2%
Selected WACC 10.0%

1180.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 1180.SR:

cost_of_equity (15.00%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.