BBRI.JK WACC - Weighted Average Cost of Capital
The WACC of Bank Rakyat Indonesia (Persero) Tbk PT (BBRI.JK) is 13.2%.
| Range | Selected | |
| Cost of equity | 14.6% - 17.6% | 16.1% |
| Tax rate | 20.7% - 21.3% | 21% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 12.0% - 14.3% | 13.2% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 1.01 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.6% | 17.6% |
| Tax rate | 20.7% | 21.3% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 12.0% | 14.3% |
| Selected WACC | 13.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BBRI.JK | Bank Rakyat Indonesia (Persero) Tbk PT | 0.32 | 1.45 | 1.15 |
| ARTO.JK | Bank Jago Tbk PT | 0.02 | 1.76 | 1.74 |
| BBCA.JK | Bank Central Asia Tbk PT | 0 | 0.88 | 0.88 |
| BBNI.JK | Bank Negara Indonesia (Persero) Tbk PT | 0.59 | 1.39 | 0.95 |
| BBSI.JK | Bank Bisnis Internasional PT | 0 | 0.05 | 0.05 |
| BINA.JK | Bank Ina Perdana Tbk PT | 0 | -0.06 | -0.06 |
| BMRI.JK | Bank Mandiri (Persero) Tbk PT | 0.61 | 1.4 | 0.94 |
| BNLI.JK | Bank Permata Tbk PT | 0.15 | 0.79 | 0.71 |
| BRIS.JK | Bank Syariah Indonesia Tbk PT | 0.01 | 1.47 | 1.46 |
| MEGA.JK | Bank Mega Tbk PT | 0.44 | 0.35 | 0.26 |
| Low | High | |
| Unlevered beta | 0.81 | 0.95 |
| Relevered beta | 1.01 | 1.18 |
| Adjusted relevered beta | 1.01 | 1.12 |
BBRI.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 BBRI.JK:
cost_of_equity (16.10%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.01) + 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.