NLCS.QA
Alijarah Holding Co QPSC
Price:  
0.76 
QAR
Volume:  
14,463,613
Qatar | Real Estate Management & Development

NLCS.QA WACC - Weighted Average Cost of Capital

The WACC of Alijarah Holding Co QPSC (NLCS.QA) is 9.1%.

The Cost of Equity of Alijarah Holding Co QPSC (NLCS.QA) is 10.25%.
The Cost of Debt of Alijarah Holding Co QPSC (NLCS.QA) is 5%.

RangeSelected
Cost of equity9.1% - 11.4%10.25%
Tax rate0.6% - 0.9%0.75%
Cost of debt5.0% - 5.0%5%
WACC8.2% - 10.0%9.1%
WACC

NLCS.QA WACC calculation

CategoryLowHigh
Long-term bond rate5.0%5.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.680.77
Additional risk adjustments0.0%0.5%
Cost of equity9.1%11.4%
Tax rate0.6%0.9%
Debt/Equity ratio
0.270.27
Cost of debt5.0%5.0%
After-tax WACC8.2%10.0%
Selected WACC9.1%

NLCS.QA'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 NLCS.QA:

cost_of_equity (10.25%) = risk_free_rate (5.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.68) + 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.