CTTH.JK WACC - Weighted Average Cost of Capital

The WACC of Citatah Tbk PT (CTTH.JK) is 13.0%.

The Cost of Equity of Citatah Tbk PT (CTTH.JK) is 19.90%.

The Cost of Debt of Citatah Tbk PT (CTTH.JK) is 13.80%.

	Range	Selected
Cost of equity	11.50% - 28.30%	19.90%
Tax rate	12.80% - 13.60%	13.20%
Cost of debt	4.00% - 23.60%	13.80%
WACC	4.6% - 21.4%	13.0%

WACC

CTTH.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.62	2.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	28.30%

Tax rate	12.80%	13.60%
Debt/Equity ratio	6.52	6.52
Cost of debt	4.00%	23.60%

After-tax WACC	4.6%	21.4%


Selected WACC	13.0%

CTTH.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 CTTH.JK:

cost_of_equity (19.90%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.62) + 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.