1810.SR
Seera Group Holding
Price:  
25.66 
SAR
Volume:  
911,643
Saudi Arabia | Hotels, Restaurants & Leisure

1810.SR WACC - Weighted Average Cost of Capital

The WACC of Seera Group Holding (1810.SR) is 8.7%.

The Cost of Equity of Seera Group Holding (1810.SR) is 9.85%.
The Cost of Debt of Seera Group Holding (1810.SR) is 5.25%.

RangeSelected
Cost of equity8.3% - 11.4%9.85%
Tax rate13.7% - 17.1%15.4%
Cost of debt4.0% - 6.5%5.25%
WACC7.3% - 10.1%8.7%
WACC

1810.SR WACC calculation

CategoryLowHigh
Long-term bond rate5.9%6.4%
Equity market risk premium6.1%7.1%
Adjusted beta0.390.63
Additional risk adjustments0.0%0.5%
Cost of equity8.3%11.4%
Tax rate13.7%17.1%
Debt/Equity ratio
0.270.27
Cost of debt4.0%6.5%
After-tax WACC7.3%10.1%
Selected WACC8.7%

1810.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 1810.SR:

cost_of_equity (9.85%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.39) + 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.