ARTI.JK
Ratu Prabu Energi Tbk PT
Price:  
2.00 
IDR
Volume:  
7,715,200.00
Indonesia | Energy Equipment & Services
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ARTI.JK WACC - Weighted Average Cost of Capital

The WACC of Ratu Prabu Energi Tbk PT (ARTI.JK) is 12.7%.

The Cost of Equity of Ratu Prabu Energi Tbk PT (ARTI.JK) is 48.00%.
The Cost of Debt of Ratu Prabu Energi Tbk PT (ARTI.JK) is 15.30%.

Range Selected
Cost of equity 40.00% - 56.00% 48.00%
Tax rate 22.00% - 23.20% 22.60%
Cost of debt 4.00% - 26.60% 15.30%
WACC 4.0% - 21.3% 12.7%
WACC

ARTI.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 4.24 5.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 40.00% 56.00%
Tax rate 22.00% 23.20%
Debt/Equity ratio 39.64 39.64
Cost of debt 4.00% 26.60%
After-tax WACC 4.0% 21.3%
Selected WACC 12.7%

ARTI.JK's CAPM model and how its cost of Equity is calculated

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 ARTI.JK:

cost_of_equity (48.00%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (4.24) + 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.