KOIN.JK
Kokoh Inti Arebama Tbk PT
Price:  
65.00 
IDR
Volume:  
5,000.00
Indonesia | Trading Companies & Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

KOIN.JK WACC - Weighted Average Cost of Capital

The WACC of Kokoh Inti Arebama Tbk PT (KOIN.JK) is 9.2%.

The Cost of Equity of Kokoh Inti Arebama Tbk PT (KOIN.JK) is 9.90%.
The Cost of Debt of Kokoh Inti Arebama Tbk PT (KOIN.JK) is 5.60%.

Range Selected
Cost of equity 9.20% - 10.60% 9.90%
Tax rate 4.00% - 7.10% 5.55%
Cost of debt 4.00% - 7.20% 5.60%
WACC 8.3% - 10.0% 9.2%
WACC

KOIN.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.33 0.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 10.60%
Tax rate 4.00% 7.10%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 7.20%
After-tax WACC 8.3% 10.0%
Selected WACC 9.2%

KOIN.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 KOIN.JK:

cost_of_equity (9.90%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.33) + 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.