Saudi Ceramic CoSAU:2040 -0.30%61 WACC % is 9.45% as of Jul. 08, 2026, which is 10% above its 10-year median of 8.62. GuruFocus rates SAU:2040 with a GF Score™ of 61/100 and a GF Value™ of ﷼31.66 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,807 Construction companies, Saudi Ceramic Co ranks worse than 62.53% on this metric.
As of today (2026-07-08), Saudi Ceramic Co's weighted average cost of capital is 9.45%%. Saudi Ceramic Co's ROIC % is 4.22% (calculated using TTM income statement data).
Saudi Ceramic Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Saudi Ceramic Co (SAU:2040) 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, Saudi Ceramic Co's weighted average cost of capital is 9.45%%. Saudi Ceramic Co's ROIC % is 4.22% (calculated using TTM income statement data).
Saudi Ceramic Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Related Terms
Saudi Ceramic Co WACC % Historical Data
* Premium members only.
The historical data trend for Saudi Ceramic Co's WACC % can be seen below:
* 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 Building Products & Equipment subindustry, Saudi Ceramic Co'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.
Saudi Ceramic Co WACC % vs Construction Industry
For the Construction industry and Industrials sector, Saudi Ceramic Co's WACC % distribution charts can be found below:
* The bar in red indicates where Saudi Ceramic Co'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, Saudi Ceramic Co's market capitalization (E) is ﷼2633.546 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 Mar. 2026, Saudi Ceramic Co's latest one-year quarterly average Book Value of Debt (D) is ﷼881.5694 Mil.
a) weight of equity = E / (E + D) = 2633.546 / (2633.546 + 881.5694) = 0.7492
b) weight of debt = D / (E + D) = 881.5694 / (2633.546 + 881.5694) = 0.2508
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 4.547%. 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. Saudi Ceramic Co's beta is 1.0083.
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 = 4.547% + 1.0083 * 6% = 10.5968%
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 Mar. 2026, Saudi Ceramic Co's interest expense (positive number) was ﷼54.509 Mil. Its total Book Value of Debt (D) is ﷼881.5694 Mil.
Cost of Debt = 54.509 / 881.5694 = 6.1832%.
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 = 5.095 / 186.942 = 2.73%.
Saudi Ceramic Co'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)
=
0.7492
*
10.5968%
+
0.2508
*
6.1832%
*
(1 - 2.73%)
=
9.45%
* 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.
Saudi Ceramic Co (SAU:2040) has a WACC % of 9.45% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Saudi Ceramic Co and its competitors. This is 10% above median its historical median of 8.62. Over the past decade, Saudi Ceramic Co's WACC % has ranged from 5.02 to 9.92. According to the industry distribution chart, Saudi Ceramic Co ranks #1130 out of 1807 companies in the Construction industry, placing it in the top 62.5%.
Is Saudi Ceramic Co's WACC % too high?
Saudi Ceramic Co's current WACC % of 9.45% is 10% above median its 10-year median of 8.62. Over the past 10 years, this metric has ranged from a low of 5.02 to a high of 9.92. The Construction industry median WACC % is 7.67. Saudi Ceramic Co's value of 9.45% is 23.2% above this industry median. Based on the distribution chart, Saudi Ceramic Co ranks #1130 out of 1807 companies in the Construction industry, which is below the industry midpoint. Overall, Saudi Ceramic Co has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Saudi Ceramic Co's WACC % compare to TT and JCI?
According to the Construction industry distribution chart, Saudi Ceramic Co ranks #1130 out of 1807 companies for WACC %. This places Saudi Ceramic Co in the lower half of its industry. The industry median WACC % is 7.67. Saudi Ceramic Co's value of 9.45% is 23.2% above this benchmark. Historically, Saudi Ceramic Co's own WACC % has ranged from 5.02 to 9.92 over the past decade. While the company's 10-year median is 8.62 vs. the industry median of 7.67, Saudi Ceramic Co 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 a Construction company?
The median WACC % among Construction companies is 7.67, based on 1,807 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. Saudi Ceramic Co's current WACC % of 9.45% is 23.2% 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 Saudi Ceramic Co and its competitors. For the Construction industry, the median WACC % is 7.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Ceramic Co's current WACC % is 9.45%, which is 10% above median its own 10-year median of 8.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Ceramic Co stock overvalued right now?
Based on GuruFocus' analysis, Saudi Ceramic Co (SAU:2040) is currently considered Modestly Undervalued. The stock's GF Value™ is ﷼31.66, compared to a current price of ﷼26.42 — trading 16.6% below its estimated fair value. The current WACC % is 9.45%, which is 10% above median its 10-year median of 8.62 and 23.2% above the Construction industry median of 7.67. Saudi Ceramic Co's overall GF Score™ is 61/100 with 7 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 Saudi Ceramic Co (SAU:2040), the current WACC % is 9.45% as of Jul. 08, 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 Saudi Ceramic Co (SAU:2040) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Ceramic Co stock appears to be undervalued.
The current stock price of ﷼26.42 is trading 16.6% below its estimated GF Value™ of ﷼31.66.
GuruFocus considers Saudi Ceramic Co to be Modestly Undervalued.
Key valuation signals for SAU:2040:
WACC %: 9.45% (10% above median its 10-year median of 8.62)
GF Value™: ﷼31.66 vs. price of ﷼26.42 (16.6% below fair value)
Industry Position: 23.2% above the Construction median (#1130 of 1807)
No single metric tells the full story. See the SAU:2040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Ceramic Co is engaged in the production and sale of ceramic products, water heaters, and related components. The company is also involved in the import of related machinery, equipment, and other accessories. It has three reporting segments: the Ceramic Tiles and Sanitary Ware segment, which generates the maximum revenue and is involved in the manufacturing and distribution of ceramic and porcelain tiles and sanitary ware items; the Water Heaters segment, which is engaged in the manufacturing and distribution of electric water heaters; and the Ceramic Pipes segment, which is involved in the manufacturing and distribution of clay pipes for sanitary ware and sewage networks. The company generates the majority of its revenue from the local market.
61GF Score
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