DOID.JK WACC - Weighted Average Cost of Capital

The WACC of Delta Dunia Makmur Tbk PT (DOID.JK) is 8.9%.

The Cost of Equity of Delta Dunia Makmur Tbk PT (DOID.JK) is 29.00%.

The Cost of Debt of Delta Dunia Makmur Tbk PT (DOID.JK) is 11.20%.

	Range	Selected
Cost of equity	26.10% - 31.90%	29.00%
Tax rate	24.30% - 33.60%	28.95%
Cost of debt	4.00% - 18.40%	11.20%
WACC	4.5% - 13.4%	8.9%

WACC

DOID.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	2.47	2.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	26.10%	31.90%

Tax rate	24.30%	33.60%
Debt/Equity ratio	15.19	15.19
Cost of debt	4.00%	18.40%

After-tax WACC	4.5%	13.4%


Selected WACC	8.9%

DOID.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 DOID.JK:

cost_of_equity (29.00%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (2.47) + 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.