INDY.JK
Indika Energy Tbk PT
Price:  
1,330.00 
IDR
Volume:  
5,206,700.00
Indonesia | Oil, Gas & Consumable Fuels
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INDY.JK WACC - Weighted Average Cost of Capital

The WACC of Indika Energy Tbk PT (INDY.JK) is 10.6%.

The Cost of Equity of Indika Energy Tbk PT (INDY.JK) is 26.55%.
The Cost of Debt of Indika Energy Tbk PT (INDY.JK) is 5.50%.

Range Selected
Cost of equity 23.70% - 29.40% 26.55%
Tax rate 22.00% - 23.20% 22.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 9.0% - 12.2% 10.6%
WACC

INDY.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 2.17 2.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 23.70% 29.40%
Tax rate 22.00% 23.20%
Debt/Equity ratio 2.5 2.5
Cost of debt 4.00% 7.00%
After-tax WACC 9.0% 12.2%
Selected WACC 10.6%

INDY.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 INDY.JK:

cost_of_equity (26.55%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (2.17) + 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.