6070.SR WACC - Weighted Average Cost of Capital

The WACC of Al Jouf Agricultural Development Company SJSC (6070.SR) is 11.9%.

The Cost of Equity of Al Jouf Agricultural Development Company SJSC (6070.SR) is 13.10%.

The Cost of Debt of Al Jouf Agricultural Development Company SJSC (6070.SR) is 6.50%.

	Range	Selected
Cost of equity	11.80% - 14.40%	13.10%
Tax rate	10.70% - 15.30%	13.00%
Cost of debt	6.50% - 6.50%	6.50%
WACC	10.8% - 13.0%	11.9%

WACC

6070.SR WACC calculation

Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.96	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	14.40%

Tax rate	10.70%	15.30%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.50%	6.50%

After-tax WACC	10.8%	13.0%


Selected WACC	11.9%

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 (13.10%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.