2380.SR
Rabigh Refining and Petrochemical Company SJSC
Price:  
6.83 
SAR
Volume:  
369,895.00
Saudi Arabia | Oil, Gas & Consumable Fuels
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2380.SR WACC - Weighted Average Cost of Capital

The WACC of Rabigh Refining and Petrochemical Company SJSC (2380.SR) is 10.2%.

The Cost of Equity of Rabigh Refining and Petrochemical Company SJSC (2380.SR) is 23.95%.
The Cost of Debt of Rabigh Refining and Petrochemical Company SJSC (2380.SR) is 5.50%.

Range Selected
Cost of equity 21.50% - 26.40% 23.95%
Tax rate 3.40% - 4.30% 3.85%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.5% - 11.9% 10.2%
WACC

2380.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 2.55 2.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 21.50% 26.40%
Tax rate 3.40% 4.30%
Debt/Equity ratio 2.79 2.79
Cost of debt 4.00% 7.00%
After-tax WACC 8.5% 11.9%
Selected WACC 10.2%

2380.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 2380.SR:

cost_of_equity (23.95%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (2.55) + 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.