KOBX.JK WACC - Weighted Average Cost of Capital

The WACC of Kobexindo Tractors Tbk PT (KOBX.JK) is 6.8%.

The Cost of Equity of Kobexindo Tractors Tbk PT (KOBX.JK) is 171,227.65%.

The Cost of Debt of Kobexindo Tractors Tbk PT (KOBX.JK) is 5.50%.

	Range	Selected
Cost of equity	3,137.80% - 339,317.50%	171,227.65%
Tax rate	9.80% - 13.90%	11.85%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.6% - 10.0%	6.8%

WACC

KOBX.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	397.35	38210.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	3,137.80%	339,317.50%

Tax rate	9.80%	13.90%
Debt/Equity ratio	84676.59	84676.59
Cost of debt	4.00%	7.00%

After-tax WACC	3.6%	10.0%


Selected WACC	6.8%

KOBX.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 KOBX.JK:

cost_of_equity (171,227.65%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (397.35) + 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.