2280.SR WACC - Weighted Average Cost of Capital
The WACC of Almarai Company SJSC (2280.SR) is 10.8%.
| Range | Selected | |
| Cost of equity | 10.7% - 13.2% | 11.95% |
| Tax rate | 5.0% - 5.3% | 5.15% |
| Cost of debt | 4.0% - 6.5% | 5.25% |
| WACC | 9.5% - 12.0% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 13.2% |
| Tax rate | 5.0% | 5.3% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 6.5% |
| After-tax WACC | 9.5% | 12.0% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2280.SR | Almarai Company SJSC | 0.21 | 0.83 | 0.69 |
| 151.HK | Want Want China Holdings Ltd | 0.1 | 0.32 | 0.3 |
| 2050.SR | Savola Group Co | 0.88 | 0.96 | 0.53 |
| 2100.SR | Wafrah for Industry and Development Company SJSC | 0.03 | 1.36 | 1.33 |
| 2267.T | Yakult Honsha Co Ltd | 0.1 | 0.19 | 0.17 |
| 2270.SR | Saudia Dairy and Foodstuff Company SJSC | 0.01 | 0.7 | 0.7 |
| 2801.T | Kikkoman Corp | 0.05 | 0.81 | 0.77 |
| 3799.HK | Dali Foods Group Co Ltd | 0.12 | 0.39 | 0.35 |
| 4080.SR | Aseer Trading Tourism & Manufacturing Co SJSC | 0.48 | 0.84 | 0.58 |
| 6001.SR | Halwani Brothers Company JSC | 0.16 | 0.87 | 0.75 |
| Low | High | |
| Unlevered beta | 0.56 | 0.7 |
| Relevered beta | 0.67 | 0.84 |
| Adjusted relevered beta | 0.78 | 0.89 |
2280.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 2280.SR:
cost_of_equity (11.95%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.