ECII.JK WACC - Weighted Average Cost of Capital
The WACC of Electronic City Indonesia Tbk PT (ECII.JK) is 11.2%.
| Range | Selected | |
| Cost of equity | 9.8% - 11.7% | 10.75% |
| Tax rate | 7.2% - 14.7% | 10.95% |
| Cost of debt | 4.0% - 26.6% | 15.3% |
| WACC | 8.6% - 13.9% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.4 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 11.7% |
| Tax rate | 7.2% | 14.7% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 26.6% |
| After-tax WACC | 8.6% | 13.9% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ECII.JK | Electronic City Indonesia Tbk PT | 0.25 | 1.04 | 0.85 |
| 3322.T | Alpha Group Inc | 0.31 | -0.23 | -0.18 |
| 573.SI | Challenger Technologies Ltd | 0.12 | -0.17 | -0.16 |
| 6033.HK | Telecom Digital Holdings Ltd | 2.41 | 0.49 | 0.15 |
| 9444.T | Toshin Holdings Co Ltd | 4.29 | 0.24 | 0.05 |
| 9446.T | Sakai Holdings Co Ltd | 2.95 | 0.35 | 0.1 |
| GLOB.JK | Global Teleshop Tbk PT | 6.1 | 0.5 | 0.08 |
| SONA.JK | Sona Topas Tourism Industry Tbk PT | 0.06 | 0.53 | 0.5 |
| SPVI.BK | SPVI PCL | 0.28 | 1.63 | 1.3 |
| TGA.AX | Thorn Group Ltd | 2.84 | 0.59 | 0.16 |
| Low | High | |
| Unlevered beta | 0.09 | 0.16 |
| Relevered beta | 0.1 | 0.19 |
| Adjusted relevered beta | 0.4 | 0.46 |
ECII.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 ECII.JK:
cost_of_equity (10.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.4) + 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.