7030.SR
Mobile Telecommunications Company Saudi Arabia SJSC
Price:  
12.54 
SAR
Volume:  
2,882,728.00
Saudi Arabia | Wireless Telecommunication Services
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7030.SR WACC - Weighted Average Cost of Capital

The WACC of Mobile Telecommunications Company Saudi Arabia SJSC (7030.SR) is 8.4%.

The Cost of Equity of Mobile Telecommunications Company Saudi Arabia SJSC (7030.SR) is 11.80%.
The Cost of Debt of Mobile Telecommunications Company Saudi Arabia SJSC (7030.SR) is 5.00%.

Range Selected
Cost of equity 10.10% - 13.50% 11.80%
Tax rate 6.80% - 7.10% 6.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.5% - 9.3% 8.4%
WACC

7030.SR WACC calculation

Category Low High
Long-term bond rate 5.9% 6.4%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.68 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 13.50%
Tax rate 6.80% 7.10%
Debt/Equity ratio 0.9 0.9
Cost of debt 5.00% 5.00%
After-tax WACC 7.5% 9.3%
Selected WACC 8.4%

7030.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 7030.SR:

cost_of_equity (11.80%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.