2380.SR
Rabigh Refining and Petrochemical Company SJSC
Price:  
7.60 
SAR
Volume:  
1,044,950.00
Saudi Arabia | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

2380.SR WACC - Weighted Average Cost of Capital

The WACC of Rabigh Refining and Petrochemical Company SJSC (2380.SR) is 10.4%.

The Cost of Equity of Rabigh Refining and Petrochemical Company SJSC (2380.SR) is 22.65%.
The Cost of Debt of Rabigh Refining and Petrochemical Company SJSC (2380.SR) is 5.50%.

Range Selected
Cost of equity 20.10% - 25.20% 22.65%
Tax rate 3.40% - 4.30% 3.85%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.6% - 12.1% 10.4%
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 2.32 2.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 20.10% 25.20%
Tax rate 3.40% 4.30%
Debt/Equity ratio 2.4 2.4
Cost of debt 4.00% 7.00%
After-tax WACC 8.6% 12.1%
Selected WACC 10.4%

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 (22.65%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (2.32) + 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.