BRNA.JK WACC - Weighted Average Cost of Capital

The WACC of Berlina Tbk PT (BRNA.JK) is 7.9%.

The Cost of Equity of Berlina Tbk PT (BRNA.JK) is 11.90%.

The Cost of Debt of Berlina Tbk PT (BRNA.JK) is 5.50%.

	Range	Selected
Cost of equity	10.60% - 13.20%	11.90%
Tax rate	13.40% - 16.70%	15.05%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.6% - 9.1%	7.9%

WACC

BRNA.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.51	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.20%

Tax rate	13.40%	16.70%
Debt/Equity ratio	1.26	1.26
Cost of debt	4.00%	7.00%

After-tax WACC	6.6%	9.1%


Selected WACC	7.9%

BRNA.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 BRNA.JK:

cost_of_equity (11.90%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.51) + 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.