BULL.JK
Buana Lintas Lautan Tbk PT
Price:  
132.00 
IDR
Volume:  
232,728,400.00
Indonesia | Marine
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BULL.JK WACC - Weighted Average Cost of Capital

The WACC of Buana Lintas Lautan Tbk PT (BULL.JK) is 9.8%.

The Cost of Equity of Buana Lintas Lautan Tbk PT (BULL.JK) is 14.90%.
The Cost of Debt of Buana Lintas Lautan Tbk PT (BULL.JK) is 5.50%.

Range Selected
Cost of equity 13.70% - 16.10% 14.90%
Tax rate 0.20% - 0.30% 0.25%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.4% - 11.1% 9.8%
WACC

BULL.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.9 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.70% 16.10%
Tax rate 0.20% 0.30%
Debt/Equity ratio 1.21 1.21
Cost of debt 4.00% 7.00%
After-tax WACC 8.4% 11.1%
Selected WACC 9.8%

BULL.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 BULL.JK:

cost_of_equity (14.90%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.9) + 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.