6070.SR WACC - Weighted Average Cost of Capital
The WACC of Al Jouf Agricultural Development Company SJSC (6070.SR) is 12.2%.
| Range | Selected | |
| Cost of equity | 11.6% - 15.4% | 13.5% |
| Tax rate | 10.7% - 15.3% | 13% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.5% - 13.8% | 12.2% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.6% | 15.4% |
| Tax rate | 10.7% | 15.3% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.5% | 13.8% |
| Selected WACC | 12.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6070.SR | Al Jouf Agricultural Development Company SJSC | 0.17 | 0.86 | 0.74 |
| 300175.SZ | Lontrue Co Ltd | 0.04 | 1.44 | 1.39 |
| 300189.SZ | Hainan Shennong Technology Co Ltd | 0.05 | 1.28 | 1.23 |
| 600359.SS | Xinjiang Talimu Agriculture Development Co Ltd | 0.15 | 0.82 | 0.72 |
| 6050.SR | Saudi Fisheries Company SJSC | 0.05 | 1.18 | 1.13 |
| 6060.SR | Ash-Sharqiyah Development Company SJSC | 0 | 1.12 | 1.11 |
| 6090.SR | Jazan Energy and Development Co | 0.27 | 0.99 | 0.79 |
| HNG.VN | Hoang Anh Gia Lai Agricultural JSC | 1.92 | 1.66 | 0.61 |
| HSPLANT.KL | Hap Seng Plantations Holdings Bhd | 0.04 | 0.63 | 0.6 |
| KSCL.NS | Kaveri Seed Company Ltd | 0 | 1.24 | 1.24 |
| Low | High | |
| Unlevered beta | 0.77 | 1.12 |
| Relevered beta | 0.9 | 1.3 |
| Adjusted relevered beta | 0.93 | 1.2 |
6070.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 6070.SR:
cost_of_equity (13.50%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.