8030.SR WACC - Weighted Average Cost of Capital
The WACC of Mediterranean and Gulf Cooperative Insurance and Reinsurance Company CJSC (8030.SR) is 13.3%.
| Range | Selected | |
| Cost of equity | 11.5% - 15.1% | 13.3% |
| Tax rate | 3.4% - 4.1% | 3.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.5% - 15.1% | 13.3% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.5% | 15.1% |
| Tax rate | 3.4% | 4.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.5% | 15.1% |
| Selected WACC | 13.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8030.SR | Mediterranean and Gulf Cooperative Insurance and Reinsurance Company CJSC | 0 | 0.62 | 0.62 |
| 8040.SR | Allianz Saudi Fransi Cooperative Insurance Company SJSC | 0 | 0.92 | 0.91 |
| 8050.SR | Salama Cooperative Insurance Company SJSC | 0.05 | 1.6 | 1.53 |
| 8150.SR | Allied Cooperative Insurance Group SJSC | 0.02 | 1.42 | 1.4 |
| 8170.SR | Al Etihad Cooperative Insurance Co SJSC | 0.01 | 0.84 | 0.83 |
| 8230.SR | Al Rajhi Company for Cooperative Insurance SJSC | 0 | 1.12 | 1.12 |
| 8250.SR | AXA Cooperative Insurance Company SJSC | 0.02 | 1.5 | 1.47 |
| 8300.SR | Wataniya Insurance Company SJSC | 0.01 | 1.4 | 1.39 |
| PVI.VN | PVI Holdings | 0.02 | 0.78 | 0.77 |
| TAKAFUL.KL | Syarikat Takaful Malaysia Keluarga Bhd | 0 | 0.3 | 0.3 |
| Low | High | |
| Unlevered beta | 0.88 | 1.23 |
| Relevered beta | 0.88 | 1.22 |
| Adjusted relevered beta | 0.92 | 1.15 |
8030.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 8030.SR:
cost_of_equity (13.30%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.