ENRG.JK WACC - Weighted Average Cost of Capital
The WACC of Energi Mega Persada Tbk PT (ENRG.JK) is 9.1%.
| Range | Selected | |
| Cost of equity | 12.2% - 15.3% | 13.75% |
| Tax rate | 40.8% - 48.7% | 44.75% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.9% - 10.2% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.71 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.2% | 15.3% |
| Tax rate | 40.8% | 48.7% |
| Debt/Equity ratio | 0.78 | 0.78 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.9% | 10.2% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ENRG.JK | Energi Mega Persada Tbk PT | 0.78 | 0.84 | 0.59 |
| ABMM.JK | ABM Investama Tbk PT | 1.94 | 1.12 | 0.55 |
| BIPI.JK | Astrindo Nusantara Infrasruktur Tbk PT | 2.24 | 0.44 | 0.2 |
| BSSR.JK | Baramulti Suksessarana Tbk PT | 0 | 0.67 | 0.67 |
| ESSA.JK | Surya Esa Perkasa Tbk PT | 0.15 | 0.34 | 0.32 |
| KKGI.JK | Resource Alam Indonesia Tbk PT | 0.02 | 0.85 | 0.84 |
| MBAP.JK | Mitrabara Adiperdana Tbk PT | 0.04 | 1.12 | 1.09 |
| MEDC.JK | Medco Energi Internasional Tbk PT | 1.82 | 0.5 | 0.25 |
| MITI.JK | Mitra Investindo Tbk PT | 0 | 0.46 | 0.46 |
| MYOH.JK | Samindo Resources Tbk PT | 0.1 | -0.46 | -0.44 |
| Low | High | |
| Unlevered beta | 0.4 | 0.57 |
| Relevered beta | 0.57 | 0.81 |
| Adjusted relevered beta | 0.71 | 0.87 |
ENRG.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 ENRG.JK:
cost_of_equity (13.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.71) + 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.