DOID.JK WACC - Weighted Average Cost of Capital

The WACC of Delta Dunia Makmur Tbk PT (DOID.JK) is 7.6%.

The Cost of Equity of Delta Dunia Makmur Tbk PT (DOID.JK) is 20.55%.

The Cost of Debt of Delta Dunia Makmur Tbk PT (DOID.JK) is 9.55%.

	Range	Selected
Cost of equity	18.20% - 22.90%	20.55%
Tax rate	24.30% - 33.60%	28.95%
Cost of debt	4.00% - 15.10%	9.55%
WACC	4.1% - 11.0%	7.6%

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	1.47	1.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.20%	22.90%

Tax rate	24.30%	33.60%
Debt/Equity ratio	12.56	12.56
Cost of debt	4.00%	15.10%

After-tax WACC	4.1%	11.0%


Selected WACC	7.6%

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 (20.55%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.47) + 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.