DADA.JK WACC - Weighted Average Cost of Capital

The WACC of Diamond Citra Propertindo PT (DADA.JK) is 9.3%.

The Cost of Equity of Diamond Citra Propertindo PT (DADA.JK) is 10.80%.

The Cost of Debt of Diamond Citra Propertindo PT (DADA.JK) is 5.50%.

	Range	Selected
Cost of equity	9.70% - 11.90%	10.80%
Tax rate	30.20% - 37.40%	33.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.2% - 10.3%	9.3%

WACC

DADA.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.39	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	11.90%

Tax rate	30.20%	37.40%
Debt/Equity ratio	0.27	0.27
Cost of debt	4.00%	7.00%

After-tax WACC	8.2%	10.3%


Selected WACC	9.3%

DADA.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 DADA.JK:

cost_of_equity (10.80%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.39) + 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.