KOIN.JK WACC - Weighted Average Cost of Capital
The WACC of Kokoh Inti Arebama Tbk PT (KOIN.JK) is 9.2%.
| Range | Selected | |
| Cost of equity | 9.2% - 10.7% | 9.95% |
| Tax rate | 4.0% - 7.1% | 5.55% |
| Cost of debt | 4.0% - 7.2% | 5.6% |
| WACC | 8.3% - 10.0% | 9.2% |
| 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 | 9.2% | 10.7% |
| Tax rate | 4.0% | 7.1% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 7.2% |
| After-tax WACC | 8.3% | 10.0% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KOIN.JK | Kokoh Inti Arebama Tbk PT | 0.2 | -0.14 | -0.11 |
| 387.HK | Leeport (Holdings) Ltd | 0.84 | -0.07 | -0.04 |
| APII.JK | Arita Prima Indonesia Tbk PT | 0.81 | 0.04 | 0.02 |
| GC.BK | Global Connections PCL | 0.57 | 0.1 | 0.07 |
| HKMU.JK | HK Metals Utama Tbk PT | 1.63 | 0 | 0 |
| INTA.JK | Intraco Penta Tbk PT | 77.68 | 0.97 | 0.01 |
| KMT.VN | Central Vietnam Metal Corp | 5.92 | 0.68 | 0.1 |
| KOBX.JK | Kobexindo Tractors Tbk PT | 85460.8 | 0.39 | 0 |
| SGER.JK | Sumber Global Energy Tbk PT | 0.23 | 0.92 | 0.76 |
| TIRA.JK | Tira Austenite Tbk PT | 0.08 | -0.61 | -0.56 |
| Low | High | |
| Unlevered beta | 0 | 0.02 |
| Relevered beta | 0 | 0.01 |
| Adjusted relevered beta | 0.33 | 0.34 |
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 (9.95%) = 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.