Sharqiyah Desalination CompanyOGMUS:SHRQ 34 WACC % is 7.35% as of Jul. 06, 2026, which is 47% above its 10-year median of 5.00. GuruFocus rates MUS:SHRQ with a GF Score™ of 34/100 and a GF Value™ of ر.ع0.12 (Significantly Overvalued). The stock has 13 warning signs investors should review. Among 512 Utilities - Regulated companies, Sharqiyah Desalination CompanyOG ranks worse than 62.11% on this metric.
As of today (2026-07-06), Sharqiyah Desalination CompanyOG's weighted average cost of capital is 7.35%%. Sharqiyah Desalination CompanyOG's ROIC % is 4.37% (calculated using TTM income statement data).
Sharqiyah Desalination CompanyOG 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.
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, Sharqiyah Desalination CompanyOG's weighted average cost of capital is 7.35%%. Sharqiyah Desalination CompanyOG's ROIC % is 4.37% (calculated using TTM income statement data).
Sharqiyah Desalination CompanyOG 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
Sharqiyah Desalination CompanyOG 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 Utilities - Regulated Water subindustry, Sharqiyah Desalination CompanyOG'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.
Sharqiyah Desalination CompanyOG WACC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Sharqiyah Desalination CompanyOG's WACC % distribution charts can be found below:
* The bar in red indicates where Sharqiyah Desalination CompanyOG'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, Sharqiyah Desalination CompanyOG's market capitalization (E) is ر.ع17.115 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, Sharqiyah Desalination CompanyOG's latest one-year annual average Book Value of Debt (D) is ر.ع36.2115 Mil.
a) weight of equity = E / (E + D) = 17.115 / (17.115 + 36.2115) = 0.3209
b) weight of debt = D / (E + D) = 36.2115 / (17.115 + 36.2115) = 0.6791
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 4.461%. 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. Sharqiyah Desalination CompanyOG'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 = 4.461% + 1 * 6% = 10.461%
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, Sharqiyah Desalination CompanyOG's interest expense (positive number) was ر.ع2.503 Mil. Its total Book Value of Debt (D) is ر.ع36.2115 Mil.
Cost of Debt = 2.503 / 36.2115 = 6.9122%.
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 = 0.089 / 0.592 = 15.03%.
* 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.
Sharqiyah Desalination CompanyOG (MUS:SHRQ) has a WACC % of 7.35% as of Jul. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sharqiyah Desalination CompanyOG and its competitors. This is 47% above median its historical median of 5.00. Over the past decade, Sharqiyah Desalination CompanyOG's WACC % has ranged from 2.86 to 7.87. According to the industry distribution chart, Sharqiyah Desalination CompanyOG ranks #318 out of 512 companies in the Utilities - Regulated industry, placing it in the top 62.1%.
Is Sharqiyah Desalination CompanyOG's WACC % too high?
Sharqiyah Desalination CompanyOG's current WACC % of 7.35% is 47% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.86 to a high of 7.87. The Utilities - Regulated industry median WACC % is 5.98. Sharqiyah Desalination CompanyOG's value of 7.35% is 23% above this industry median. Based on the distribution chart, Sharqiyah Desalination CompanyOG ranks #318 out of 512 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Sharqiyah Desalination CompanyOG has a GF Score™ of 34/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sharqiyah Desalination CompanyOG's WACC % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Sharqiyah Desalination CompanyOG ranks #318 out of 512 companies for WACC %. This places Sharqiyah Desalination CompanyOG in the lower half of its industry. The industry median WACC % is 5.98. Sharqiyah Desalination CompanyOG's value of 7.35% is 23% above this benchmark. Historically, Sharqiyah Desalination CompanyOG's own WACC % has ranged from 2.86 to 7.87 over the past decade. While the company's 10-year median is 5.00 vs. the industry median of 5.98, Sharqiyah Desalination CompanyOG 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 Utilities - Regulated company?
The median WACC % among Utilities - Regulated companies is 5.98, based on 512 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. Sharqiyah Desalination CompanyOG's current WACC % of 7.35% is 23% 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 Sharqiyah Desalination CompanyOG and its competitors. For the Utilities - Regulated industry, the median WACC % is 5.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharqiyah Desalination CompanyOG's current WACC % is 7.35%, which is 47% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharqiyah Desalination CompanyOG stock overvalued right now?
Based on GuruFocus' analysis, Sharqiyah Desalination CompanyOG (MUS:SHRQ) is currently considered Significantly Overvalued. The stock's GF Value™ is ر.ع0.12, compared to a current price of ر.ع0.18 — trading 45.8% above its estimated fair value. The current WACC % is 7.35%, which is 47% above median its 10-year median of 5.00 and 23% above the Utilities - Regulated industry median of 5.98. Sharqiyah Desalination CompanyOG's overall GF Score™ is 34/100 with 13 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 Sharqiyah Desalination CompanyOG (MUS:SHRQ), the current WACC % is 7.35% as of Jul. 06, 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 Sharqiyah Desalination CompanyOG (MUS:SHRQ) Overvalued in 2026?
Based on GuruFocus' analysis, Sharqiyah Desalination CompanyOG stock appears to be overvalued.
The current stock price of ر.ع0.18 is trading 45.8% above its estimated GF Value™ of ر.ع0.12.
GuruFocus considers Sharqiyah Desalination CompanyOG to be Significantly Overvalued.
Key valuation signals for MUS:SHRQ:
WACC %: 7.35% (47% above median its 10-year median of 5.00)
GF Value™: ر.ع0.12 vs. price of ر.ع0.18 (45.8% above fair value)
Industry Position: 23% above the Utilities - Regulated median (#318 of 512)
No single metric tells the full story. See the MUS:SHRQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sharqiyah Desalination CompanyOG Business Description
Sharqiyah Desalination Company SAOG acquires, develops, operates, and maintains a water desalination plant at Sur in the Sharqiyah region of the Sultanate of Oman, producing potable water under a build-own-operate model.
34GF Score
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