JKON.JK WACC - Weighted Average Cost of Capital
The WACC of Jaya Konstruksi Manggala Pratama Tbk PT (JKON.JK) is 11.3%.
| Range | Selected | |
| Cost of equity | 10.8% - 13.7% | 12.25% |
| Tax rate | 19.0% - 28.6% | 23.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 9.9% - 12.7% | 11.3% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.53 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.8% | 13.7% |
| Tax rate | 19.0% | 28.6% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 9.9% | 12.7% |
| Selected WACC | 11.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JKON.JK | Jaya Konstruksi Manggala Pratama Tbk PT | 0.13 | 0.89 | 0.81 |
| ACST.JK | Acset Indonusa Tbk PT | 0.45 | 1.45 | 1.07 |
| DGIK.JK | Nusa Konstruksi Enjiniring Tbk PT | 0.29 | 0.41 | 0.33 |
| ITDCEM.NS | ITD Cementation India Ltd | 0.08 | 0.07 | 0.07 |
| L03.SI | Lian Beng Group Ltd | 2.29 | 0.32 | 0.11 |
| NRCA.JK | Nusa Raya Cipta Tbk PT | 0.21 | 0.75 | 0.64 |
| SSIA.JK | Surya Semesta Internusa Tbk PT | 0.22 | 0.41 | 0.35 |
| TOPS.JK | Totalindo Eka Persada Tbk PT | 12.59 | -0.83 | -0.07 |
| UNIQ.BK | Unique Engineering and Construction PCL | 11.17 | 1.47 | 0.15 |
| WEGE.JK | Wijaya Karya Bangunan Gedung Tbk PT | 0.74 | 1.48 | 0.93 |
| Low | High | |
| Unlevered beta | 0.26 | 0.46 |
| Relevered beta | 0.3 | 0.52 |
| Adjusted relevered beta | 0.53 | 0.68 |
JKON.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 JKON.JK:
cost_of_equity (12.25%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.53) + 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.