GLVA.JK
Galva Technologies Tbk PT
Price:  
310.00 
IDR
Volume:  
9,100.00
Indonesia | Electronic Equipment, Instruments & Components
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GLVA.JK WACC - Weighted Average Cost of Capital

The WACC of Galva Technologies Tbk PT (GLVA.JK) is 10.7%.

The Cost of Equity of Galva Technologies Tbk PT (GLVA.JK) is 16.15%.
The Cost of Debt of Galva Technologies Tbk PT (GLVA.JK) is 5.00%.

Range Selected
Cost of equity 14.60% - 17.70% 16.15%
Tax rate 22.90% - 23.10% 23.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.8% - 11.5% 10.7%
WACC

GLVA.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 1.01 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.60% 17.70%
Tax rate 22.90% 23.10%
Debt/Equity ratio 0.8 0.8
Cost of debt 5.00% 5.00%
After-tax WACC 9.8% 11.5%
Selected WACC 10.7%

GLVA.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 GLVA.JK:

cost_of_equity (16.15%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.01) + 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.