KLBF.JK WACC - Weighted Average Cost of Capital
The WACC of Kalbe Farma Tbk PT (KLBF.JK) is 12.6%.
| Range | Selected | |
| Cost of equity | 11.5% - 13.7% | 12.6% |
| Tax rate | 22.7% - 22.9% | 22.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.5% - 13.6% | 12.6% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.62 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.5% | 13.7% |
| Tax rate | 22.7% | 22.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.5% | 13.6% |
| Selected WACC | 12.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KLBF.JK | Kalbe Farma Tbk PT | 0.01 | 0.66 | 0.66 |
| 000513.SZ | Livzon Pharmaceutical Group Inc | 0.13 | 0.62 | 0.57 |
| 4530.T | Hisamitsu Pharmaceutical Co Inc | 0.01 | 0.13 | 0.13 |
| DVLA.JK | Darya-Varia Laboratoria Tbk PT | 0 | 0.46 | 0.46 |
| KAEF.JK | Kimia Farma Tbk PT | 2.05 | 1.3 | 0.5 |
| MERK.JK | Merck Tbk PT | 0.02 | 0.39 | 0.39 |
| PEHA.JK | Phapros Tbk PT | 2.83 | 0.89 | 0.28 |
| PYFA.JK | Pyridam Farma Tbk PT | 1.43 | 1.52 | 0.72 |
| SOHO.JK | SOHO Global Health PT | 0 | 0.36 | 0.36 |
| TSPC.JK | Tempo Scan Pacific Tbk PT | 0.08 | 0.69 | 0.64 |
| Low | High | |
| Unlevered beta | 0.43 | 0.53 |
| Relevered beta | 0.43 | 0.54 |
| Adjusted relevered beta | 0.62 | 0.69 |
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 (12.60%) = 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.