Cost of equity
Cost of equity = Risk-free rate + β × Equity risk premium + Country risk premium
Saudi Arabia, FY2025: risk-free rate 5.25%, equity risk premium 5.01%, country risk premium 0.78%.
Definitions
- Source data
- Audited annual reports, keyed into the same statement template for every company and stored as one row per reported number.
- Industries
- Exchange sector labels map to one GCC industry list (GCC-TEL, GCC-MIL and so on), so Tadawul and ADX telecom companies land in the same row.
- Aggregation
- Company values are added first, then ratios are taken on the totals. Larger companies weigh more.
- Fiscal year
- Year ending 31 December. Market values use the last closing price of the year.
- Market value
- Year-end share price × shares outstanding, net of treasury shares.
- Enterprise value
- Market value + interest-bearing debt − cash and cash equivalents.
- EBITDA
- Gross profit less employee, marketing, general and administrative and other operating costs, plus other operating income.
- ROIC
- NOPAT ÷ invested capital (operating method: net working capital + net PP&E + acquired intangibles + other long-term assets).
- Beta
- Slope of the company's daily returns against TASI daily returns within each calendar year. Raw, not adjusted toward 1.
- Risk-free rate
- Average coupon on local-currency government sukuk or bonds issued during the year.
- Zakat
- Kept separate from income tax and included in cash taxes for NOPAT.
- Banks and insurers
- Excluded from EBITDA, EV and working-capital measures. They will get their own tables.
- Corrections
- Where a figure is still being checked, such as market values around share-count changes, the tables show a dash instead.