CMNP.JK WACC - Weighted Average Cost of Capital

The WACC of Citra Marga Nusaphala Persada Tbk PT (CMNP.JK) is 10.7%.

The Cost of Equity of Citra Marga Nusaphala Persada Tbk PT (CMNP.JK) is 16.25%.

The Cost of Debt of Citra Marga Nusaphala Persada Tbk PT (CMNP.JK) is 5.50%.

	Range	Selected
Cost of equity	13.90% - 18.60%	16.25%
Tax rate	23.60% - 24.90%	24.25%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.9% - 12.5%	10.7%

WACC

CMNP.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.92	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	18.60%

Tax rate	23.60%	24.90%
Debt/Equity ratio	0.85	0.85
Cost of debt	4.00%	7.00%

After-tax WACC	8.9%	12.5%


Selected WACC	10.7%

CMNP.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 CMNP.JK:

cost_of_equity (16.25%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.92) + 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.