8150.SR WACC - Weighted Average Cost of Capital
The WACC of Allied Cooperative Insurance Group SJSC (8150.SR) is 14.4%.
| Range | Selected | |
| Cost of equity | 13.1% - 16.0% | 14.55% |
| Tax rate | 22.9% - 48.3% | 35.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 13.0% - 15.8% | 14.4% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.18 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.1% | 16.0% |
| Tax rate | 22.9% | 48.3% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 13.0% | 15.8% |
| Selected WACC | 14.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8150.SR | Allied Cooperative Insurance Group SJSC | 0.02 | 1.42 | 1.4 |
| 8012.SR | Aljazira Takaful Taawuni Company SJSC | 0.02 | 1.27 | 1.26 |
| 8050.SR | Salama Cooperative Insurance Company SJSC | 0.05 | 1.6 | 1.55 |
| 8120.SR | Gulf Union Alahlia Cooperative Insurance Co | 0.01 | 1.26 | 1.24 |
| 8160.SR | Arabia Insurance Cooperative Company SJSC | 0.01 | 0.92 | 0.91 |
| 8250.SR | AXA Cooperative Insurance Company SJSC | 0.02 | 1.5 | 1.48 |
| 8260.SR | Gulf General Cooperative Insurance Company SJSC | 0.01 | 1.02 | 1.01 |
| 8270.SR | Buruj Cooperative Insurance Co SJSC | 0 | 1.55 | 1.55 |
| 8300.SR | Wataniya Insurance Company SJSC | 0.01 | 1.4 | 1.39 |
| 8312.SR | Alinma Tokio Marine Company SJSC | 0.01 | 0.96 | 0.95 |
| Low | High | |
| Unlevered beta | 1.25 | 1.4 |
| Relevered beta | 1.27 | 1.42 |
| Adjusted relevered beta | 1.18 | 1.28 |
8150.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 8150.SR:
cost_of_equity (14.55%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (1.18) + 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.