CARS.JK
Industri Dan Perdagangan Bintraco Dharma Tbk PT
Price:  
87.00 
IDR
Volume:  
1,886,300.00
Indonesia | Specialty Retail
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CARS.JK WACC - Weighted Average Cost of Capital

The WACC of Industri Dan Perdagangan Bintraco Dharma Tbk PT (CARS.JK) is 9.3%.

The Cost of Equity of Industri Dan Perdagangan Bintraco Dharma Tbk PT (CARS.JK) is 15.65%.
The Cost of Debt of Industri Dan Perdagangan Bintraco Dharma Tbk PT (CARS.JK) is 5.50%.

Range Selected
Cost of equity 12.10% - 19.20% 15.65%
Tax rate 24.10% - 30.50% 27.30%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.2% - 11.5% 9.3%
WACC

CARS.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.7 1.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.10% 19.20%
Tax rate 24.10% 30.50%
Debt/Equity ratio 1.17 1.17
Cost of debt 4.00% 7.00%
After-tax WACC 7.2% 11.5%
Selected WACC 9.3%

CARS.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 CARS.JK:

cost_of_equity (15.65%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.7) + 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.