7200.SR WACC - Weighted Average Cost of Capital

The WACC of Al Moammar Information Systems Co CJSC (7200.SR) is 11.2%.

The Cost of Equity of Al Moammar Information Systems Co CJSC (7200.SR) is 12.10%.

The Cost of Debt of Al Moammar Information Systems Co CJSC (7200.SR) is 8.10%.

	Range	Selected
Cost of equity	10.90% - 13.30%	12.10%
Tax rate	9.10% - 10.70%	9.90%
Cost of debt	7.00% - 9.20%	8.10%
WACC	10.1% - 12.4%	11.2%

WACC

7200.SR WACC calculation

Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.81	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.30%

Tax rate	9.10%	10.70%
Debt/Equity ratio	0.21	0.21
Cost of debt	7.00%	9.20%

After-tax WACC	10.1%	12.4%


Selected WACC	11.2%

7200.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 7200.SR:

cost_of_equity (12.10%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.