INCF.JK WACC - Weighted Average Cost of Capital

The WACC of Indo Komoditi Korpora Tbk PT (INCF.JK) is 6.2%.

The Cost of Equity of Indo Komoditi Korpora Tbk PT (INCF.JK) is 32.75%.

The Cost of Debt of Indo Komoditi Korpora Tbk PT (INCF.JK) is 5.50%.

	Range	Selected
Cost of equity	24.60% - 40.90%	32.75%
Tax rate	28.20% - 44.80%	36.50%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.0% - 7.5%	6.2%

WACC

INCF.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	2.28	3.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	24.60%	40.90%

Tax rate	28.20%	44.80%
Debt/Equity ratio	9.21	9.21
Cost of debt	4.00%	7.00%

After-tax WACC	5.0%	7.5%


Selected WACC	6.2%

INCF.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 INCF.JK:

cost_of_equity (32.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (2.28) + 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.