2130.SR WACC - Weighted Average Cost of Capital
The WACC of Saudi Industrial Development Company SJSC (2130.SR) is 9.4%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.3% | 9.8% |
| Tax rate | 2.4% - 8.4% | 5.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 10.8% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.39 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.3% |
| Tax rate | 2.4% | 8.4% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 10.8% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2130.SR | Saudi Industrial Development Company SJSC | 0.07 | 1.69 | 1.58 |
| 1213.SR | Naseej International Trading Co | 0.14 | 1.63 | 1.44 |
| 2223.HK | Casablanca Group Ltd | 0.41 | -0.42 | -0.3 |
| 2340.SR | Al Abdullatif Industrial Investment Company SJSC | 0.23 | 1.55 | 1.26 |
| 396.HK | Hing Lee (Hk) Holdings Ltd | 0.03 | -0.33 | -0.32 |
| 603389.SS | A-Zenith Home Furnishings Co Ltd | 0.04 | 0.84 | 0.81 |
| 605318.SS | Fsilon Furnishing and Construction Materials Corp | 0.04 | 0.12 | 0.12 |
| 776.HK | Imperium Group Global Holdings Ltd | 0.63 | -0.17 | -0.1 |
| GEMA.JK | Gema Grahasarana Tbk PT | 3.01 | 0.34 | 0.09 |
| SERNKOU.KL | Sern Kou Resources Bhd | 0.13 | 0.08 | 0.07 |
| Low | High | |
| Unlevered beta | 0.08 | 0.4 |
| Relevered beta | 0.09 | 0.42 |
| Adjusted relevered beta | 0.39 | 0.61 |
2130.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 2130.SR:
cost_of_equity (9.80%) = 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.