The WACC of Alijarah Holding Co QPSC (NLCS.QA) is 9.1%.
Range | Selected | |
Cost of equity | 9.1% - 11.4% | 10.25% |
Tax rate | 0.6% - 0.9% | 0.75% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 8.2% - 10.0% | 9.1% |
Category | Low | High |
Long-term bond rate | 5.0% | 5.5% |
Equity market risk premium | 6.0% | 7.0% |
Adjusted beta | 0.68 | 0.77 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.1% | 11.4% |
Tax rate | 0.6% | 0.9% |
Debt/Equity ratio | 0.27 | 0.27 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 8.2% | 10.0% |
Selected WACC | 9.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NLCS.QA | Alijarah Holding Co QPSC | 0.27 | 1.2 | 0.95 |
2506.TW | Pacific Construction Co Ltd | 0.55 | 0.34 | 0.22 |
298.HK | Chuang's China Investments Ltd | 2.4 | 1.07 | 0.32 |
600647.SS | Shanghai Tongda Venture Capital Co Ltd | 0.26 | 0.6 | 0.48 |
AMATAV.BK | Amata VN PCL | 1.58 | 0.45 | 0.18 |
ASHIANA.NS | Ashiana Housing Ltd | 0.05 | 0.64 | 0.61 |
HNMR.TA | Hanan Mor Group Holdings Ltd | 18.08 | 1 | 0.05 |
NUSA.BK | Nusasiri PCL | 2.01 | 1.57 | 0.52 |
TITIJYA.KL | Titijaya Land Bhd | 0.93 | 1.21 | 0.63 |
UDCD.QA | United Development Company QPSC | 1.35 | 1.21 | 0.52 |
Low | High | |
Unlevered beta | 0.41 | 0.52 |
Relevered beta | 0.52 | 0.66 |
Adjusted relevered beta | 0.68 | 0.77 |
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.