8130.SR WACC - Weighted Average Cost of Capital
The WACC of Alahli Takaful Company SJSC (8130.SR) is 8.4%.
| Range | Selected | |
| Cost of equity | 12.4% - 15.0% | 13.7% |
| Tax rate | 25.8% - 44.4% | 35.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 8.9% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 5.4% | 5.9% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 1.29 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.4% | 15.0% |
| Tax rate | 25.8% | 44.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 8.9% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8130.SR | Alahli Takaful Company SJSC | 0.81 | 1.09 | 0.75 |
| 8010.SR | Company for Cooperative Insurance SJSC | 0 | 0.79 | 0.79 |
| 8030.SR | Mediterranean and Gulf Cooperative Insurance and Reinsurance Company CJSC | 0 | 0.62 | 0.62 |
| 8050.SR | Salama Cooperative Insurance Company SJSC | 0.05 | 1.6 | 1.56 |
| 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 | 1.48 |
| 8311.SR | Saudi Enaya Cooperative Insurance Company SJSC | 0.01 | 1.2 | 1.2 |
| 8312.SR | Alinma Tokio Marine Company SJSC | 0.01 | 0.96 | 0.95 |
| ASCANA.DB | Arabian Scandinavian Insurance Co PLC | 0.35 | -0.33 | -0.27 |
| DIN.DB | Dubai Insurance Co PSC | 0.03 | 0.1 | 0.1 |
| TUNEPRO.KL | Tune Protect Group Bhd | 0.03 | 0.71 | 0.7 |
| Low | High | |
| Unlevered beta | 0.75 | 0.95 |
| Relevered beta | 1.43 | 1.49 |
| Adjusted relevered beta | 1.29 | 1.33 |
8130.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 8130.SR:
cost_of_equity (13.70%) = risk_free_rate (5.65%) + equity_risk_premium (5.90%) * adjusted_beta (1.29) + 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.