As of today (2026-07-02), Al Ain Ahlia Insurance Co PSC's weighted average cost of capital is 10.48%%. Al Ain Ahlia Insurance Co PSC's ROIC % is 0.00% (calculated using TTM income statement data).
Al Ain Ahlia Insurance Co PSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Al Ain Ahlia Insurance Co PSC (ADX:ALAIN) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Al Ain Ahlia Insurance Co PSC's weighted average cost of capital is 10.48%%. Al Ain Ahlia Insurance Co PSC's ROIC % is 0.00% (calculated using TTM income statement data).
Al Ain Ahlia Insurance Co PSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Al Ain Ahlia Insurance Co PSC WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Diversified subindustry, Al Ain Ahlia Insurance Co PSC's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Al Ain Ahlia Insurance Co PSC WACC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Al Ain Ahlia Insurance Co PSC's WACC % distribution charts can be found below:
* The bar in red indicates where Al Ain Ahlia Insurance Co PSC's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Al Ain Ahlia Insurance Co PSC's market capitalization (E) is د.إ472.500 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Al Ain Ahlia Insurance Co PSC's latest one-year annual average Book Value of Debt (D) is د.إ0 Mil.
a) weight of equity = E / (E + D) = 472.500 / (472.500 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (472.500 + 0) = 0
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.481%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Al Ain Ahlia Insurance Co PSC's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.481% + 1 * 6% = 10.481%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, Al Ain Ahlia Insurance Co PSC's interest expense (positive number) was د.إ45.025 Mil. Its total Book Value of Debt (D) is د.إ0 Mil.
Cost of Debt = 45.025 / 0 = %.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated annual Tax Rate = 0.896 / 28.673 = 3.12%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Al Ain Ahlia Insurance Co PSC (ADX:ALAIN) has a WACC % of 10.48% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Al Ain Ahlia Insurance Co PSC and its competitors. This is 22% above median its historical median of 8.57. Over the past decade, Al Ain Ahlia Insurance Co PSC's WACC % has ranged from 6.93 to 10.57.
Is Al Ain Ahlia Insurance Co PSC's WACC % too high?
Al Ain Ahlia Insurance Co PSC's current WACC % of 10.48% is 22% above median its 10-year median of 8.57. Over the past 10 years, this metric has ranged from a low of 6.93 to a high of 10.57. The Insurance industry median WACC % is 9.24. Al Ain Ahlia Insurance Co PSC's value of 10.48% is 13.4% above this industry median. Overall, Al Ain Ahlia Insurance Co PSC has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Al Ain Ahlia Insurance Co PSC's WACC % compare to BRK.A and AIG?
Al Ain Ahlia Insurance Co PSC's WACC % of 10.48% can be compared against companies in the Insurance industry. The industry median WACC % is 9.24. Al Ain Ahlia Insurance Co PSC's value of 10.48% is 13.4% above this benchmark. Historically, Al Ain Ahlia Insurance Co PSC's own WACC % has ranged from 6.93 to 10.57 over the past decade. While the company's 10-year median is 8.57 vs. the industry median of 9.24, Al Ain Ahlia Insurance Co PSC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Insurance company?
The median WACC % among Insurance companies is 9.24, based on 519 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Al Ain Ahlia Insurance Co PSC's current WACC % of 10.48% is 13.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Al Ain Ahlia Insurance Co PSC and its competitors. For the Insurance industry, the median WACC % is 9.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Ain Ahlia Insurance Co PSC's current WACC % is 10.48%, which is 22% above median its own 10-year median of 8.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Ain Ahlia Insurance Co PSC stock overvalued right now?
Al Ain Ahlia Insurance Co PSC (ADX:ALAIN) has a current WACC % of 10.48%. The stock's GF Value™ is د.إ61.74, compared to a current price of د.إ31.50 — trading 49% below its estimated fair value. The current WACC % is 10.48%, which is 22% above median its 10-year median of 8.57 and 13.4% above the Insurance industry median of 9.24. Al Ain Ahlia Insurance Co PSC's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Al Ain Ahlia Insurance Co PSC (ADX:ALAIN), the current WACC % is 10.48% as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Al Ain Ahlia Insurance Co PSC (ADX:ALAIN) Overvalued in 2026?
Based on GuruFocus' analysis, Al Ain Ahlia Insurance Co PSC stock appears to be undervalued.
The current stock price of د.إ31.50 is trading 49% below its estimated GF Value™ of د.إ61.74.
Key valuation signals for ADX:ALAIN:
WACC %: 10.48% (22% above median its 10-year median of 8.57)
GF Value™: د.إ61.74 vs. price of د.إ31.50 (49% below fair value)
Industry Position: 13.4% above the Insurance median
No single metric tells the full story. See the ADX:ALAIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Ain Ahlia Insurance Co PSC Business Description
Al Ain Ahlia Insurance Co PSC is an Abu Dhabi-based insurance company providing a range of insurance products and services including motor, engineering, health, property, marine, energy, and aviation insurance as well as reinsurance solutions. The company operates its business in two segments: Underwriting of General Insurance Business and Investments, out of which the company derives majority of its revenue from the Underwriting of General Insurance business in the form of insurance contracts and commission income incorporating all classes of general insurance such as fire, marine, motor, medical, general accident and miscellaneous.
67GF Score
Get the complete analysis for ADX:ALAIN
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ADX:ALAIN has been successfully added to your 
