BJBR.JK
Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT
Price:  
845.00 
IDR
Volume:  
3,995,800.00
Indonesia | Banks
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BJBR.JK WACC - Weighted Average Cost of Capital

The WACC of Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT (BJBR.JK) is 6.4%.

The Cost of Equity of Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT (BJBR.JK) is 17.35%.
The Cost of Debt of Bank Pembangunan Daerah Jawa Barat dan Banten Tbk PT (BJBR.JK) is 5.00%.

Range Selected
Cost of equity 14.10% - 20.60% 17.35%
Tax rate 20.90% - 21.40% 21.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.8% - 7.0% 6.4%
WACC

BJBR.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.95 1.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.10% 20.60%
Tax rate 20.90% 21.40%
Debt/Equity ratio 4.42 4.42
Cost of debt 5.00% 5.00%
After-tax WACC 5.8% 7.0%
Selected WACC 6.4%

BJBR.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 BJBR.JK:

cost_of_equity (17.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.95) + 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.