Muscat Insurance CoOGMUS:MCTI 27 WACC % is 27.67% as of Jul. 05, 2026, which is 90% above its 10-year median of 14.54. GuruFocus rates MUS:MCTI with a GF Score™ of 27/100 and a GF Value™ of ر.ع0.40 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 519 Insurance companies, Muscat Insurance CoOG ranks worse than 99.04% on this metric.
As of today (2026-07-05), Muscat Insurance CoOG's weighted average cost of capital is 27.67%%. Muscat Insurance CoOG's ROIC % is 0.00% (calculated using TTM income statement data).
Muscat Insurance CoOG 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.
Muscat Insurance CoOG (MUS:MCTI) 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, Muscat Insurance CoOG's weighted average cost of capital is 27.67%%. Muscat Insurance CoOG's ROIC % is 0.00% (calculated using TTM income statement data).
Muscat Insurance CoOG 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 quarterly 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 TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* 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 - Property & Casualty subindustry, Muscat Insurance CoOG'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.
Muscat Insurance CoOG WACC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Muscat Insurance CoOG's WACC % distribution charts can be found below:
* The bar in red indicates where Muscat Insurance CoOG'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, Muscat Insurance CoOG's market capitalization (E) is ر.ع6.284 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Muscat Insurance CoOG's latest one-year quarterly average Book Value of Debt (D) is ر.ع0.0294 Mil.
a) weight of equity = E / (E + D) = 6.284 / (6.284 + 0.0294) = 0.9953
b) weight of debt = D / (E + D) = 0.0294 / (6.284 + 0.0294) = 0.0047
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 4.485%. 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. Muscat Insurance CoOG'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 = 4.485% + 1 * 6% = 10.485%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Dec. 2025, Muscat Insurance CoOG's interest expense (positive number) was ر.ع1.078 Mil. Its total Book Value of Debt (D) is ر.ع0.0294 Mil.
Cost of Debt = 1.078 / 0.0294 = 3666.6667%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM 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 TTM Tax Rate = -0.049 / 1.104 = -4.44%, which is less than 0%. Therefore it's set to 0%.
Muscat Insurance CoOG's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9953
*
10.485%
+
0.0047
*
3666.6667%
*
(1 - 0%)
=
27.67%
* 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.
Muscat Insurance CoOG (MUS:MCTI) has a WACC % of 27.67% as of Jul. 05, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Muscat Insurance CoOG and its competitors. This is 90% above median its historical median of 14.54. Over the past decade, Muscat Insurance CoOG's WACC % has ranged from 7.43 to 41.66. According to the industry distribution chart, Muscat Insurance CoOG ranks #514 out of 519 companies in the Insurance industry, placing it in the top 99%.
Is Muscat Insurance CoOG's WACC % too high?
Muscat Insurance CoOG's current WACC % of 27.67% is 90% above median its 10-year median of 14.54. Over the past 10 years, this metric has ranged from a low of 7.43 to a high of 41.66. The Insurance industry median WACC % is 9.10. Muscat Insurance CoOG's value of 27.67% is 204.1% above this industry median. Based on the distribution chart, Muscat Insurance CoOG ranks #514 out of 519 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Muscat Insurance CoOG has a GF Score™ of 27/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Muscat Insurance CoOG's WACC % compare to CB and PGR?
According to the Insurance industry distribution chart, Muscat Insurance CoOG ranks #514 out of 519 companies for WACC %. This places Muscat Insurance CoOG in the lower half of its industry. The industry median WACC % is 9.10. Muscat Insurance CoOG's value of 27.67% is 204.1% above this benchmark. Historically, Muscat Insurance CoOG's own WACC % has ranged from 7.43 to 41.66 over the past decade. While the company's 10-year median is 14.54 vs. the industry median of 9.10, Muscat Insurance CoOG 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 9.10, 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. Muscat Insurance CoOG's current WACC % of 27.67% is 204.1% 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 Muscat Insurance CoOG and its competitors. For the Insurance industry, the median WACC % is 9.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muscat Insurance CoOG's current WACC % is 27.67%, which is 90% above median its own 10-year median of 14.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muscat Insurance CoOG stock overvalued right now?
Based on GuruFocus' analysis, Muscat Insurance CoOG (MUS:MCTI) is currently considered Significantly Overvalued. The stock's GF Value™ is ر.ع0.40, compared to a current price of ر.ع0.57 — trading 42.5% above its estimated fair value. The current WACC % is 27.67%, which is 90% above median its 10-year median of 14.54 and 204.1% above the Insurance industry median of 9.10. Muscat Insurance CoOG's overall GF Score™ is 27/100 with 1 warning sign 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 Muscat Insurance CoOG (MUS:MCTI), the current WACC % is 27.67% as of Jul. 05, 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 Muscat Insurance CoOG (MUS:MCTI) Overvalued in 2026?
Based on GuruFocus' analysis, Muscat Insurance CoOG stock appears to be overvalued.
The current stock price of ر.ع0.57 is trading 42.5% above its estimated GF Value™ of ر.ع0.40.
GuruFocus considers Muscat Insurance CoOG to be Significantly Overvalued.
Key valuation signals for MUS:MCTI:
WACC %: 27.67% (90% above median its 10-year median of 14.54)
GF Value™: ر.ع0.40 vs. price of ر.ع0.57 (42.5% above fair value)
Industry Position: 204.1% above the Insurance median (#514 of 519)
No single metric tells the full story. See the MUS:MCTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muscat Insurance Co SAOG provides a wide range of insurance products and services to corporate, SME, and individual customers. It offers life, health, and all classes of general insurance products, including travel insurance, individual motor insurance, householders insurance, loan insurance, personal accident insurance, property insurance, marine cargo insurance, etc. The company has two reportable segments: General and Life insurance business. The majority of its revenue is generated from the General and Medical insurance business, which includes insurance of motor, fire, marine, engineering, workmen's compensation, general accident, and medical. The Life insurance business relates to the insurance of the life and medical of an individual or company, and the credit life policies.
27GF Score
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