8270.SR WACC - Weighted Average Cost of Capital
The WACC of Buruj Cooperative Insurance Co SJSC (8270.SR) is 12.1%.
| Range | Selected | |
| Cost of equity | 10.4% - 13.9% | 12.15% |
| Tax rate | 20.0% - 20.0% | 20% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.4% - 13.9% | 12.1% |
| Category | Low | High |
| Long-term bond rate | 5.9% | 6.4% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.73 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 13.9% |
| Tax rate | 20.0% | 20.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.4% | 13.9% |
| Selected WACC | 12.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8270.SR | Buruj Cooperative Insurance Co SJSC | 0 | 1.53 | 1.52 |
| 6161.HK | Target Insurance Holdings Ltd | 0.87 | -0.03 | -0.02 |
| 8020.SR | Malath Cooperative Insurance Company SJSC | 0 | 1.32 | 1.32 |
| 8070.SR | Arabian Shield Cooperative Insurance Company SJSC | 0 | 0.99 | 0.99 |
| 8160.SR | Arabia Insurance Cooperative Company SJSC | 0.01 | 0.87 | 0.87 |
| 8190.SR | United Cooperative Assurance Company SJSC | 0 | 1.08 | 1.07 |
| 8312.SR | Alinma Tokio Marine Company SJSC | 0.01 | 0.96 | 0.95 |
| DOHI.QA | Doha Insurance Group QPSC | 0.03 | 0.08 | 0.07 |
| MPHBCAP.KL | MPHB Capital Bhd | 0 | 0.11 | 0.11 |
| NKI.BK | Navakij Insurance PCL | 0.04 | 0.2 | 0.19 |
| Low | High | |
| Unlevered beta | 0.6 | 0.97 |
| Relevered beta | 0.6 | 0.97 |
| Adjusted relevered beta | 0.73 | 0.98 |
8270.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 8270.SR:
cost_of_equity (12.15%) = risk_free_rate (6.15%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.