3091.SR
Al Jouf Cement Company SJSC
Price:  
7.40 
SAR
Volume:  
497,989.00
Saudi Arabia | Construction Materials
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3091.SR WACC - Weighted Average Cost of Capital

The WACC of Al Jouf Cement Company SJSC (3091.SR) is 12.7%.

The Cost of Equity of Al Jouf Cement Company SJSC (3091.SR) is 12.55%.
The Cost of Debt of Al Jouf Cement Company SJSC (3091.SR) is 15.45%.

Range Selected
Cost of equity 10.90% - 14.20% 12.55%
Tax rate 10.20% - 18.40% 14.30%
Cost of debt 5.00% - 25.90% 15.45%
WACC 7.9% - 17.5% 12.7%
WACC

3091.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.82 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.90% 14.20%
Tax rate 10.20% 18.40%
Debt/Equity ratio 0.88 0.88
Cost of debt 5.00% 25.90%
After-tax WACC 7.9% 17.5%
Selected WACC 12.7%

3091.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 3091.SR:

cost_of_equity (12.55%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.