JGLE.JK WACC - Weighted Average Cost of Capital

The WACC of Graha Andrasentra Propertindo Tbk PT (JGLE.JK) is 11.4%.

The Cost of Equity of Graha Andrasentra Propertindo Tbk PT (JGLE.JK) is 11.55%.

The Cost of Debt of Graha Andrasentra Propertindo Tbk PT (JGLE.JK) is 13.80%.

	Range	Selected
Cost of equity	10.30% - 12.80%	11.55%
Tax rate	22.00% - 23.20%	22.60%
Cost of debt	4.00% - 23.60%	13.80%
WACC	9.5% - 13.4%	11.4%

WACC

JGLE.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.46	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	12.80%

Tax rate	22.00%	23.20%
Debt/Equity ratio	0.12	0.12
Cost of debt	4.00%	23.60%

After-tax WACC	9.5%	13.4%


Selected WACC	11.4%

JGLE.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 JGLE.JK:

cost_of_equity (11.55%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.46) + 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.