BPII.JK
Batavia Prosperindo Internasional Tbk PT
Price:  
590.00 
IDR
Volume:  
214,300.00
Indonesia | Capital Markets
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BPII.JK WACC - Weighted Average Cost of Capital

The WACC of Batavia Prosperindo Internasional Tbk PT (BPII.JK) is 10.1%.

The Cost of Equity of Batavia Prosperindo Internasional Tbk PT (BPII.JK) is 11.60%.
The Cost of Debt of Batavia Prosperindo Internasional Tbk PT (BPII.JK) is 5.50%.

Range Selected
Cost of equity 10.20% - 13.00% 11.60%
Tax rate 25.20% - 26.20% 25.70%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.8% - 11.5% 10.1%
WACC

BPII.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.46 0.61
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 13.00%
Tax rate 25.20% 26.20%
Debt/Equity ratio 0.24 0.24
Cost of debt 4.00% 7.00%
After-tax WACC 8.8% 11.5%
Selected WACC 10.1%

BPII.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 BPII.JK:

cost_of_equity (11.60%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.46) + 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.