9501.SR WACC - Weighted Average Cost of Capital
The WACC of Development Works Food Co CJSC (9501.SR) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.7% | 9.85% |
| Tax rate | 3.7% - 4.8% | 4.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.8% - 11.2% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 5.4% | 5.9% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.49 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.7% |
| Tax rate | 3.7% | 4.8% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.8% | 11.2% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9501.SR | Development Works Food Co CJSC | 0.09 | 1.26 | 1.17 |
| 1869.HK | Li Bao Ge Group Ltd | 0.48 | -0.04 | -0.03 |
| 5KI.SI | Soup Restaurant Group Ltd | 0.63 | 0.08 | 0.05 |
| 6002.SR | Herfy Food Services Company SJSC | 0.37 | 1.58 | 1.17 |
| 6004.SR | Saudi Airlines Catering Company SJSC | 0.04 | 1.06 | 1.02 |
| 6012.SR | Raydan Food Company | 0.31 | 1.43 | 1.1 |
| 8371.HK | Taste Gourmet Group Ltd | 0.72 | 0.43 | 0.26 |
| 8475.HK | K Group Holdings Ltd | 0.64 | 1.44 | 0.9 |
| 8940.TW | New Palace International Co Ltd | 0.63 | 0.8 | 0.5 |
| PTSP.JK | Pioneerindo Gourmet International Tbk PT | 0.35 | 0.35 | 0.26 |
| Low | High | |
| Unlevered beta | 0.4 | 0.94 |
| Relevered beta | 0.24 | 0.76 |
| Adjusted relevered beta | 0.49 | 0.84 |
9501.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 9501.SR:
cost_of_equity (9.85%) = risk_free_rate (5.65%) + equity_risk_premium (5.90%) * adjusted_beta (0.49) + 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.