LINK.JK WACC - Weighted Average Cost of Capital
The WACC of Link Net Tbk PT (LINK.JK) is 7.3%.
| Range | Selected | |
| Cost of equity | 10.2% - 14.2% | 12.2% |
| Tax rate | 15.3% - 23.5% | 19.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 7.9% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.46 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.2% | 14.2% |
| Tax rate | 15.3% | 23.5% |
| Debt/Equity ratio | 1.53 | 1.53 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 7.9% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LINK.JK | Link Net Tbk PT | 1.53 | 0.17 | 0.08 |
| 093320.KQ | Kinx Inc | 0.19 | 0.06 | 0.05 |
| 1045.HK | APT Satellite Holdings Ltd | 0.06 | 0.26 | 0.25 |
| 603322.SS | Super Telecom Co Ltd | 0.08 | 1.02 | 0.96 |
| ABB.AX | Aussie Broadband Ltd | 0.29 | 0.81 | 0.67 |
| DNET.JK | Indoritel Makmur Internasional Tbk PT | 0.05 | 0.48 | 0.46 |
| GHON.JK | Gihon Telekomunikasi Indonesia Tbk PT | 0.51 | 0.45 | 0.32 |
| MNF.AX | MNF Group Ltd | 0.04 | -0.02 | -0.02 |
| ST1.AX | Spirit Technology Solutions Ltd | 0.48 | 0.13 | 0.1 |
| VN8.AX | Vonex Ltd | 1.17 | -0.75 | -0.39 |
| Low | High | |
| Unlevered beta | 0.09 | 0.28 |
| Relevered beta | 0.19 | 0.61 |
| Adjusted relevered beta | 0.46 | 0.74 |
LINK.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 LINK.JK:
cost_of_equity (12.20%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.46) + 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.