BAJA.JK
Saranacentral Bajatama Tbk PT
Price:  
134.00 
IDR
Volume:  
6,489,600.00
Indonesia | Metals & Mining
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BAJA.JK WACC - Weighted Average Cost of Capital

The WACC of Saranacentral Bajatama Tbk PT (BAJA.JK) is 8.1%.

The Cost of Equity of Saranacentral Bajatama Tbk PT (BAJA.JK) is 14.70%.
The Cost of Debt of Saranacentral Bajatama Tbk PT (BAJA.JK) is 5.00%.

Range Selected
Cost of equity 13.50% - 15.90% 14.70%
Tax rate 17.90% - 21.40% 19.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 8.5% 8.1%
WACC

BAJA.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.88 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 15.90%
Tax rate 17.90% 21.40%
Debt/Equity ratio 1.64 1.64
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 8.5%
Selected WACC 8.1%

BAJA.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 BAJA.JK:

cost_of_equity (14.70%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.88) + 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.