8010.SR WACC - Weighted Average Cost of Capital
The WACC of Company for Cooperative Insurance SJSC (8010.SR) is 14.7%.
| Range | Selected | |
| Cost of equity | 13.1% - 16.3% | 14.7% |
| Tax rate | 19.3% - 23.1% | 21.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 13.1% - 16.3% | 14.7% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.17 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.1% | 16.3% |
| Tax rate | 19.3% | 23.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 13.1% | 16.3% |
| Selected WACC | 14.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8010.SR | Company for Cooperative Insurance SJSC | 0 | 0.85 | 0.84 |
| 8030.SR | Mediterranean and Gulf Cooperative Insurance and Reinsurance Company CJSC | 0 | 1.49 | 1.49 |
| 8040.SR | Allianz Saudi Fransi Cooperative Insurance Company SJSC | 0 | 1.36 | 1.36 |
| 8150.SR | Allied Cooperative Insurance Group SJSC | 0.02 | 1.9 | 1.87 |
| 8170.SR | Al Etihad Cooperative Insurance Co SJSC | 0.01 | 1.12 | 1.11 |
| 8230.SR | Al Rajhi Company for Cooperative Insurance SJSC | 0 | 1.74 | 1.74 |
| 8250.SR | AXA Cooperative Insurance Company SJSC | 0.02 | 1.49 | 1.47 |
| 8300.SR | Wataniya Insurance Company SJSC | 0.01 | 1.62 | 1.61 |
| RGSS.ME | SK Rosgosstrakh PAO | 0.01 | 0.12 | 0.12 |
| TGH.BK | Thai Group Holdings PCL | 2.12 | 0.2 | 0.07 |
| Low | High | |
| Unlevered beta | 1.26 | 1.48 |
| Relevered beta | 1.25 | 1.48 |
| Adjusted relevered beta | 1.17 | 1.32 |
8010.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 8010.SR:
cost_of_equity (14.70%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.17) + 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.