DPUM.JK WACC - Weighted Average Cost of Capital

The WACC of Dua Putra Utama Makmur Tbk PT (DPUM.JK) is 7.6%.

The Cost of Equity of Dua Putra Utama Makmur Tbk PT (DPUM.JK) is 18.65%.

The Cost of Debt of Dua Putra Utama Makmur Tbk PT (DPUM.JK) is 5.50%.

	Range	Selected
Cost of equity	15.70% - 21.60%	18.65%
Tax rate	22.80% - 37.50%	30.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.3% - 8.8%	7.6%

WACC

DPUM.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	1.15	1.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	21.60%

Tax rate	22.80%	37.50%
Debt/Equity ratio	2.89	2.89
Cost of debt	4.00%	7.00%

After-tax WACC	6.3%	8.8%


Selected WACC	7.6%

DPUM.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 DPUM.JK:

cost_of_equity (18.65%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.15) + 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.