DGIK.JK
Nusa Konstruksi Enjiniring Tbk PT
Price:  
87 
IDR
Volume:  
2,295,200
Indonesia | Construction & Engineering

DGIK.JK WACC - Weighted Average Cost of Capital

The WACC of Nusa Konstruksi Enjiniring Tbk PT (DGIK.JK) is 11.8%.

The Cost of Equity of Nusa Konstruksi Enjiniring Tbk PT (DGIK.JK) is 13.55%.
The Cost of Debt of Nusa Konstruksi Enjiniring Tbk PT (DGIK.JK) is 5%.

RangeSelected
Cost of equity11.9% - 15.2%13.55%
Tax rate6.9% - 11.9%9.4%
Cost of debt5.0% - 5.0%5%
WACC10.5% - 13.1%11.8%
WACC

DGIK.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.670.85
Additional risk adjustments0.0%0.5%
Cost of equity11.9%15.2%
Tax rate6.9%11.9%
Debt/Equity ratio
0.230.23
Cost of debt5.0%5.0%
After-tax WACC10.5%13.1%
Selected WACC11.8%

DGIK.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 DGIK.JK:

cost_of_equity (13.55%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.67) + 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.