The Discounted Cash Flow (DCF) valuation of Arabian Pipes Company SJSC (2200.SR) is 9.43 SAR. With the latest stock price at 6.49 SAR, the upside of Arabian Pipes Company SJSC based on DCF is 45.3%.

Is 2200.SR a buy or a sell?

Based on the latest price of 6.49 SAR and our DCF valuation, Arabian Pipes Company SJSC (2200.SR) is a buy. Buying 2200.SR stocks now will result in a potential gain of 45.3%.

	Range	Selected
WACC / Discount Rate	11.6% - 14.0%	12.8%
Long-term Growth Rate	0.5% - 1.5%	1.0%
Fair Price	8.15 - 11.13	9.43
Upside	25.6% - 71.6%	45.3%

6.49 SAR

Stock Price

9.43 SAR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

2200.SR DCF Valuation: Revenue & Expenses Forecast

(SAR in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	1,138	1,313	1,419	1,558	1,708	1,813
% Growth	6%	15%	8%	10%	10%	6%

Cost of goods sold	(852)	(983)	(1,062)	(1,166)	(1,279)	(1,357)
% of Revenue	75%	75%	75%	75%	75%	75%

Selling, G&A expenses	(44)	(51)	(55)	(60)	(66)	(70)
% of Revenue	4%	4%	4%	4%	4%	4%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(66)	(76)	(82)	(90)	(99)	(105)
% of Revenue	6%	6%	6%	6%	6%	6%

Tax expense	(8)	(9)	(10)	(11)	(12)	(13)
Tax rate	4%	4%	4%	4%	4%	4%

Net profit	168	194	210	230	252	268
% Margin	15%	15%	15%	15%	15%	15%