JSMR.JK WACC - Weighted Average Cost of Capital
The WACC of Jasa Marga (Persero) Tbk PT (JSMR.JK) is 6.7%.
| Range | Selected | |
| Cost of equity | 12.6% - 15.6% | 14.1% |
| Tax rate | 28.5% - 45.8% | 37.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.9% - 7.4% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.76 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 15.6% |
| Tax rate | 28.5% | 45.8% |
| Debt/Equity ratio | 2.23 | 2.23 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.9% | 7.4% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JSMR.JK | Jasa Marga (Persero) Tbk PT | 2.23 | 1.02 | 0.43 |
| 152.HK | Shenzhen International Holdings Ltd | 3.17 | 0.64 | 0.22 |
| 576.HK | Zhejiang Expressway Co Ltd | 1.98 | 0.68 | 0.3 |
| 600020.SS | Henan Zhongyuan Expressway Co Ltd | 2.98 | 0.7 | 0.24 |
| 600269.SS | Jiangxi Ganyue Expressway Co Ltd | 1.03 | 1.02 | 0.62 |
| 600350.SS | Shandong Hi-speed Co Ltd | 1.53 | 0.19 | 0.1 |
| 600548.SS | Shenzhen Expressway Co Ltd | 1.25 | 0.41 | 0.23 |
| 601107.SS | Sichuan Expressway Co Ltd | 2.05 | 0.65 | 0.28 |
| CMNP.JK | Citra Marga Nusaphala Persada Tbk PT | 0.78 | 1.01 | 0.68 |
| META.JK | Nusantara Infrastructure Tbk PT | 0.11 | 1.35 | 1.26 |
| Low | High | |
| Unlevered beta | 0.27 | 0.35 |
| Relevered beta | 0.64 | 0.84 |
| Adjusted relevered beta | 0.76 | 0.89 |
JSMR.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 JSMR.JK:
cost_of_equity (14.10%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.76) + 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.