KIJA.JK WACC - Weighted Average Cost of Capital
The WACC of Kawasan Industri Jababeka Tbk PT (KIJA.JK) is 10.1%.
| Range | Selected | |
| Cost of equity | 14.8% - 17.9% | 16.35% |
| Tax rate | 10.3% - 14.1% | 12.2% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 8.7% - 11.5% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 1.03 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.8% | 17.9% |
| Tax rate | 10.3% | 14.1% |
| Debt/Equity ratio | 1.18 | 1.18 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 8.7% | 11.5% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KIJA.JK | Kawasan Industri Jababeka Tbk PT | 1.18 | 0.46 | 0.23 |
| 000514.SZ | Chongqing yukaifa Co Ltd | 0.43 | 1.4 | 1.02 |
| ASRI.JK | ALAM SUTERA REALTY Tbk PT | 2.19 | 1.72 | 0.59 |
| BEST.JK | Bekasi Fajar Industrial Estate Tbk PT | 1.38 | 1.27 | 0.58 |
| DART.JK | Duta Anggada Realty Tbk PT | 7.43 | 0.58 | 0.08 |
| E&O.KL | Eastern & Oriental Bhd | 0.78 | 1.08 | 0.64 |
| GPRA.JK | Perdana Gapura Prima Tbk PT | 0.42 | 0.87 | 0.64 |
| KOTA.JK | Pt Dms Propertindo Tbk | 0.58 | -0.11 | -0.07 |
| LPCK.JK | Lippo Cikarang Tbk PT | 0.23 | 0.52 | 0.43 |
| PWON.JK | Pakuwon Jati Tbk PT | 0.36 | 0.93 | 0.71 |
| Low | High | |
| Unlevered beta | 0.52 | 0.61 |
| Relevered beta | 1.04 | 1.24 |
| Adjusted relevered beta | 1.03 | 1.16 |
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 (16.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.03) + 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.