KLBF.JK
Kalbe Farma Tbk PT
Price:  
1,515.00 
IDR
Volume:  
8,125,900.00
Indonesia | Pharmaceuticals
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KLBF.JK WACC - Weighted Average Cost of Capital

The WACC of Kalbe Farma Tbk PT (KLBF.JK) is 12.6%.

The Cost of Equity of Kalbe Farma Tbk PT (KLBF.JK) is 12.70%.
The Cost of Debt of Kalbe Farma Tbk PT (KLBF.JK) is 5.00%.

Range Selected
Cost of equity 11.50% - 13.90% 12.70%
Tax rate 22.70% - 22.90% 22.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.5% - 13.8% 12.6%
WACC

KLBF.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.62 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.50% 13.90%
Tax rate 22.70% 22.90%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 11.5% 13.8%
Selected WACC 12.6%

KLBF.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 KLBF.JK:

cost_of_equity (12.70%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.62) + 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.