EMDE.JK WACC - Weighted Average Cost of Capital

The WACC of Megapolitan Developments Tbk PT (EMDE.JK) is 10.9%.

The Cost of Equity of Megapolitan Developments Tbk PT (EMDE.JK) is 18.85%.

The Cost of Debt of Megapolitan Developments Tbk PT (EMDE.JK) is 5.50%.

	Range	Selected
Cost of equity	16.80% - 20.90%	18.85%
Tax rate	0.40% - 1.20%	0.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.2% - 12.6%	10.9%

WACC

EMDE.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	1.3	1.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	20.90%

Tax rate	0.40%	1.20%
Debt/Equity ratio	1.44	1.44
Cost of debt	4.00%	7.00%

After-tax WACC	9.2%	12.6%


Selected WACC	10.9%

EMDE.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 EMDE.JK:

cost_of_equity (18.85%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.3) + 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.