Category	Low	High

Long-term bond rate	5.9%	6.4%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.51	1.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.1%	19.1%

Tax rate	7.4%	10.3%
Debt/Equity ratio	1	1
Cost of debt	5.0%	5.0%

After-tax WACC	9.9%	11.8%


Selected WACC	10.8%

8100.SR WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

8100.SR	Saudi Arabian Cooperative Insurance Company SJSC	1.13	1.16	0.57
662.HK	Asia Financial Holdings Ltd	0	0.31	0.31
8040.SR	Allianz Saudi Fransi Cooperative Insurance Company SJSC	0	1.03	1.03
8050.SR	Salama Cooperative Insurance Company SJSC	0.05	1.63	1.56
8120.SR	Gulf Union Alahlia Cooperative Insurance Co	0.01	1.17	1.16
8150.SR	Allied Cooperative Insurance Group SJSC	0.01	1.43	1.41
8160.SR	Arabia Insurance Cooperative Company SJSC	0.01	0.87	0.87
8170.SR	Al Etihad Cooperative Insurance Co SJSC	0.01	0.82	0.82
8300.SR	Wataniya Insurance Company SJSC	0.01	1.38	1.37
8312.SR	Alinma Tokio Marine Company SJSC	0.01	0.96	0.95
PVI.VN	PVI Holdings	0.02	0.65	0.64

	Low	High

Unlevered beta	0.87	1.03
Relevered beta	1.76	2.07
Adjusted relevered beta	1.51	1.72

8100.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 8100.SR:

cost_of_equity (17.10%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.51) + 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.