KIJA.JK
Kawasan Industri Jababeka Tbk PT
Price:  
190.00 
IDR
Volume:  
83,395,000.00
Indonesia | Real Estate Management & Development
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KIJA.JK WACC - Weighted Average Cost of Capital

The WACC of Kawasan Industri Jababeka Tbk PT (KIJA.JK) is 10.2%.

The Cost of Equity of Kawasan Industri Jababeka Tbk PT (KIJA.JK) is 16.40%.
The Cost of Debt of Kawasan Industri Jababeka Tbk PT (KIJA.JK) is 5.50%.

Range Selected
Cost of equity 14.80% - 18.00% 16.40%
Tax rate 10.30% - 14.10% 12.20%
Cost of debt 4.00% - 7.00% 5.50%
WACC 8.8% - 11.6% 10.2%
WACC

KIJA.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 1.04 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.80% 18.00%
Tax rate 10.30% 14.10%
Debt/Equity ratio 1.14 1.14
Cost of debt 4.00% 7.00%
After-tax WACC 8.8% 11.6%
Selected WACC 10.2%

KIJA.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 KIJA.JK:

cost_of_equity (16.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.04) + 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.