BGTG.JK WACC - Weighted Average Cost of Capital
The WACC of Bank Ganesha Tbk PT (BGTG.JK) is 14.7%.
| Range | Selected | |
| Cost of equity | 13.0% - 16.6% | 14.8% |
| Tax rate | 20.4% - 22.8% | 21.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 12.9% - 16.5% | 14.7% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.81 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.0% | 16.6% |
| Tax rate | 20.4% | 22.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 12.9% | 16.5% |
| Selected WACC | 14.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BGTG.JK | Bank Ganesha Tbk PT | 0.01 | 1.16 | 1.16 |
| BABP.JK | Bank MNC Internasional Tbk PT | 0.53 | 0.82 | 0.58 |
| BBC.AX | BNK Banking Corporation Ltd | 9.67 | 0.66 | 0.08 |
| BBYB.JK | PT Bank Neo Commerce Tbk | 0.08 | 2.05 | 1.92 |
| BEKS.JK | Bank Pembangunan Daerah Banten Tbk PT | 0 | 0.98 | 0.98 |
| BNBA.JK | Bank Bumi Arta Tbk PT | 0 | 0.8 | 0.8 |
| BSWD.JK | Bank Of India Indonesia Tbk PT | 0 | 0.25 | 0.25 |
| DNAR.JK | Bank Oke Indonesia Tbk PT | 0.28 | 1.39 | 1.14 |
| RDRB.ME | Rossiyskiy Aktsionernyi Kommercheskiy Dorozhnyi Bank PAO | 0.92 | -0.13 | -0.07 |
| VICO.JK | Victoria Investama Tbk PT | 0.22 | 1.24 | 1.05 |
| Low | High | |
| Unlevered beta | 0.71 | 1.01 |
| Relevered beta | 0.72 | 1.01 |
| Adjusted relevered beta | 0.81 | 1.01 |
BGTG.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 BGTG.JK:
cost_of_equity (14.80%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.81) + 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.