4002.SR WACC - Weighted Average Cost of Capital
The WACC of Mouwasat Medical Services Company SJSC (4002.SR) is 13.5%.
| Range | Selected | |
| Cost of equity | 12.7% - 15.2% | 13.95% |
| Tax rate | 3.9% - 4.6% | 4.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 12.3% - 14.7% | 13.5% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.11 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.7% | 15.2% |
| Tax rate | 3.9% | 4.6% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 12.3% | 14.7% |
| Selected WACC | 13.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4002.SR | Mouwasat Medical Services Company SJSC | 0.05 | 1.24 | 1.19 |
| 000516.SZ | XiAn International Medical Investment Co Ltd | 0.39 | 1.63 | 1.19 |
| 2140.SR | AYYAN Investment Co SJSC | 0 | 1.81 | 1.81 |
| 4004.SR | Dallah Healthcare Company SJSC | 0.15 | 1.01 | 0.88 |
| 4005.SR | National Medical Care Company JSC | 0.07 | 1.27 | 1.2 |
| 4007.SR | Al Hammadi Company for Development and Investment SJSC | 0.05 | 1.04 | 1 |
| 4009.SR | Middle East Healthcare Company PJSC | 0.46 | 1.8 | 1.25 |
| 4013.SR | Dr Sulaiman Al-Habib Medical Services Group Co | 0.09 | 0.96 | 0.89 |
| 6078.HK | Hygeia Healthcare Holdings Co Ltd | 0.15 | 1.8 | 1.57 |
| BH.BK | Bumrungrad Hospital PCL | 0 | 0.51 | 0.51 |
| Low | High | |
| Unlevered beta | 1.11 | 1.19 |
| Relevered beta | 1.16 | 1.25 |
| Adjusted relevered beta | 1.11 | 1.17 |
4002.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 4002.SR:
cost_of_equity (13.95%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.