HELI.JK WACC - Weighted Average Cost of Capital

The WACC of Jaya Trishindo Tbk PT (HELI.JK) is 10.1%.

The Cost of Equity of Jaya Trishindo Tbk PT (HELI.JK) is 12.35%.

The Cost of Debt of Jaya Trishindo Tbk PT (HELI.JK) is 5.50%.

	Range	Selected
Cost of equity	11.30% - 13.40%	12.35%
Tax rate	17.20% - 25.90%	21.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.1% - 11.2%	10.1%

WACC

HELI.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.59	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	13.40%

Tax rate	17.20%	25.90%
Debt/Equity ratio	0.38	0.38
Cost of debt	4.00%	7.00%

After-tax WACC	9.1%	11.2%


Selected WACC	10.1%

HELI.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 HELI.JK:

cost_of_equity (12.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.59) + 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.