BIRD.JK WACC - Weighted Average Cost of Capital

The WACC of Blue Bird Tbk PT (BIRD.JK) is 9.9%.

The Cost of Equity of Blue Bird Tbk PT (BIRD.JK) is 11.80%.

The Cost of Debt of Blue Bird Tbk PT (BIRD.JK) is 5.00%.

	Range	Selected
Cost of equity	10.10% - 13.50%	11.80%
Tax rate	23.80% - 32.40%	28.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.6% - 11.1%	9.9%

WACC

BIRD.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.44	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.50%

Tax rate	23.80%	32.40%
Debt/Equity ratio	0.31	0.31
Cost of debt	5.00%	5.00%

After-tax WACC	8.6%	11.1%


Selected WACC	9.9%

BIRD.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 BIRD.JK:

cost_of_equity (11.80%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.44) + 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.