4009.SR
Middle East Healthcare Company PJSC
Price:  
69.00 
SAR
Volume:  
254,519.00
Saudi Arabia | Health Care Providers & Services
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4009.SR WACC - Weighted Average Cost of Capital

The WACC of Middle East Healthcare Company PJSC (4009.SR) is 10.9%.

The Cost of Equity of Middle East Healthcare Company PJSC (4009.SR) is 13.60%.
The Cost of Debt of Middle East Healthcare Company PJSC (4009.SR) is 5.00%.

Range Selected
Cost of equity 12.20% - 15.00% 13.60%
Tax rate 10.50% - 22.70% 16.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.0% - 11.9% 10.9%
WACC

4009.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.02 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.20% 15.00%
Tax rate 10.50% 22.70%
Debt/Equity ratio 0.39 0.39
Cost of debt 5.00% 5.00%
After-tax WACC 10.0% 11.9%
Selected WACC 10.9%

4009.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 4009.SR:

cost_of_equity (13.60%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.