The WACC of Apexindo Pratama Duta Tbk PT (APEX.JK) is 5.6%.
Range | Selected | |
Cost of equity | 10.6% - 21.5% | 16.05% |
Tax rate | 29.1% - 40.0% | 34.55% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 4.8% - 6.4% | 5.6% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.51 | 1.56 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.6% | 21.5% |
Tax rate | 29.1% | 40.0% |
Debt/Equity ratio | 4.43 | 4.43 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 4.8% | 6.4% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
APEX.JK | Apexindo Pratama Duta Tbk PT | 4.43 | 0.36 | 0.09 |
002828.SZ | XinJiang Beiken Energy Engineering Co Ltd | 0.24 | 0.96 | 0.84 |
601808.SS | China Oilfield Services Ltd | 0.28 | 0.73 | 0.62 |
ABAN.NS | Aban Offshore Ltd | 46.42 | 0.9 | 0.03 |
ARII.JK | Atlas Resources Tbk PT | 1.58 | 0.05 | 0.03 |
ARTI.JK | Ratu Prabu Energi Tbk PT | 39.13 | -1.92 | -0.07 |
ELSA.JK | Elnusa Tbk PT | 0.34 | 0.9 | 0.73 |
LEAD.JK | Logindo Samudramakmur Tbk PT | 3.05 | 1.11 | 0.37 |
PVD.VN | PetroVietnam Drilling & Well Service Corp | 0.3 | 1.45 | 1.21 |
SAPNRG.KL | Sapura Energy Bhd | 14.7 | 0.32 | 0.03 |
Low | High | |
Unlevered beta | 0.07 | 0.47 |
Relevered beta | 0.27 | 1.84 |
Adjusted relevered beta | 0.51 | 1.56 |
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for APEX.JK:
cost_of_equity (16.05%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.51) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.