6040.SR WACC - Weighted Average Cost of Capital
The WACC of Tabuk Agricultural Development Co SJSC (6040.SR) is 11.0%.
| Range | Selected | |
| Cost of equity | 10.1% - 13.9% | 12% |
| Tax rate | 3.5% - 6.6% | 5.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.4% - 12.7% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.69 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 13.9% |
| Tax rate | 3.5% | 6.6% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.4% | 12.7% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6040.SR | Tabuk Agricultural Development Co SJSC | 0.15 | 1.55 | 1.35 |
| 532159.BO | Trescon Ltd | 0.37 | 0.17 | 0.13 |
| 600506.SS | Xinjiang Korla Pear Co Ltd | 0.25 | 0.86 | 0.69 |
| 6010.SR | National Agriculture Development Company SJSC | 0.04 | 1.29 | 1.25 |
| 6060.SR | Ash-Sharqiyah Development Company SJSC | 0 | 1.49 | 1.49 |
| 6070.SR | Al Jouf Agricultural Development Company SJSC | 0.19 | 1.11 | 0.93 |
| 6090.SR | Jazan Energy and Development Co | 0.29 | 1 | 0.78 |
| GOPENG.KL | Gopeng Bhd | 0 | -0.35 | -0.34 |
| PLS.KL | Pls Plantations Bhd | 0.52 | -0.39 | -0.26 |
| PRG.BK | Patum Rice Mill and Granary PCL | 0.05 | 0.07 | 0.06 |
| Low | High | |
| Unlevered beta | 0.46 | 0.84 |
| Relevered beta | 0.54 | 0.97 |
| Adjusted relevered beta | 0.69 | 0.98 |
6040.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 6040.SR:
cost_of_equity (12.00%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.