1211.SR
Saudi Arabian Mining Company SJSC
Price:  
51.10 
SAR
Volume:  
2,638,879.00
Saudi Arabia | Metals & Mining
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1211.SR WACC - Weighted Average Cost of Capital

The WACC of Saudi Arabian Mining Company SJSC (1211.SR) is 11.0%.

The Cost of Equity of Saudi Arabian Mining Company SJSC (1211.SR) is 12.30%.
The Cost of Debt of Saudi Arabian Mining Company SJSC (1211.SR) is 5.00%.

Range Selected
Cost of equity 11.00% - 13.60% 12.30%
Tax rate 9.80% - 15.90% 12.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.9% - 12.1% 11.0%
WACC

1211.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.83 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 13.60%
Tax rate 9.80% 15.90%
Debt/Equity ratio 0.2 0.2
Cost of debt 5.00% 5.00%
After-tax WACC 9.9% 12.1%
Selected WACC 11.0%

1211.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 1211.SR:

cost_of_equity (12.30%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.