DSNG.JK WACC - Weighted Average Cost of Capital

The WACC of Dharma Satya Nusantara Tbk PT (DSNG.JK) is 10.8%.

The Cost of Equity of Dharma Satya Nusantara Tbk PT (DSNG.JK) is 15.50%.

The Cost of Debt of Dharma Satya Nusantara Tbk PT (DSNG.JK) is 5.50%.

	Range	Selected
Cost of equity	12.70% - 18.30%	15.50%
Tax rate	25.80% - 27.90%	26.85%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.8% - 12.9%	10.8%

WACC

DSNG.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.78	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	18.30%

Tax rate	25.80%	27.90%
Debt/Equity ratio	0.68	0.68
Cost of debt	4.00%	7.00%

After-tax WACC	8.8%	12.9%


Selected WACC	10.8%

DSNG.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 DSNG.JK:

cost_of_equity (15.50%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.78) + 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.