HMSP.JK
Hanjaya Mandala Sampoerna Tbk PT
Price:  
605.00 
IDR
Volume:  
19,840,600.00
Indonesia | Tobacco
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HMSP.JK WACC - Weighted Average Cost of Capital

The WACC of Hanjaya Mandala Sampoerna Tbk PT (HMSP.JK) is 13.6%.

The Cost of Equity of Hanjaya Mandala Sampoerna Tbk PT (HMSP.JK) is 13.65%.
The Cost of Debt of Hanjaya Mandala Sampoerna Tbk PT (HMSP.JK) is 5.50%.

Range Selected
Cost of equity 12.00% - 15.30% 13.65%
Tax rate 22.70% - 23.30% 23.00%
Cost of debt 4.00% - 7.00% 5.50%
WACC 11.9% - 15.3% 13.6%
WACC

HMSP.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.68 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.00% 15.30%
Tax rate 22.70% 23.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 7.00%
After-tax WACC 11.9% 15.3%
Selected WACC 13.6%

HMSP.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 HMSP.JK:

cost_of_equity (13.65%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.68) + 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.