CINT.JK WACC - Weighted Average Cost of Capital
The WACC of Chitose Internasional Tbk PT (CINT.JK) is 10.9%.
| Range | Selected | |
| Cost of equity | 11.1% - 13.5% | 12.3% |
| Tax rate | 22.0% - 23.2% | 22.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 9.7% - 12.1% | 10.9% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.57 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 13.5% |
| Tax rate | 22.0% | 23.2% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 9.7% | 12.1% |
| Selected WACC | 10.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CINT.JK | Chitose Internasional Tbk PT | 0.21 | 0.76 | 0.66 |
| 396.HK | Hing Lee (Hk) Holdings Ltd | 0.03 | -0.53 | -0.52 |
| 8101.HK | EJE Hong Kong Holdings Ltd | 4.47 | 1 | 0.22 |
| EVE.VN | Everpia JSC | 0.59 | 0.69 | 0.47 |
| GEMA.JK | Gema Grahasarana Tbk PT | 2.52 | 0.32 | 0.11 |
| LEESK.KL | Lee Swee Kiat Group Bhd | 0.07 | 0.31 | 0.29 |
| LMPI.JK | Langgeng Makmur Industri Tbk PT | 1.99 | 1.13 | 0.44 |
| PREMIERPOL.NS | Premier Polyfilm Ltd | 0.02 | 0.42 | 0.41 |
| SHH.KL | Shh Resources Holdings Bhd | 0.04 | 0.32 | 0.31 |
| SOFA.JK | Boston Furniture Industries Tbk PT | 0.04 | 1.59 | 1.55 |
| Low | High | |
| Unlevered beta | 0.3 | 0.43 |
| Relevered beta | 0.36 | 0.49 |
| Adjusted relevered beta | 0.57 | 0.66 |
CINT.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 CINT.JK:
cost_of_equity (12.30%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.57) + 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.