LRNA.JK WACC - Weighted Average Cost of Capital
The WACC of Eka Sari Lorena Transport Tbk PT (LRNA.JK) is 9.5%.
| Range | Selected | |
| Cost of equity | 9.5% - 11.4% | 10.45% |
| Tax rate | 16.4% - 20.9% | 18.65% |
| Cost of debt | 4.0% - 7.2% | 5.6% |
| WACC | 8.4% - 10.5% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.36 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.5% | 11.4% |
| Tax rate | 16.4% | 20.9% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 7.2% |
| After-tax WACC | 8.4% | 10.5% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| LRNA.JK | Eka Sari Lorena Transport Tbk PT | 0.2 | 0.34 | 0.29 |
| 052300.KQ | W Holding Company Co Ltd | 0.16 | -0.17 | -0.15 |
| BPTR.JK | Batavia Prosperindo Trans Tbk PT | 5.27 | 0.64 | 0.12 |
| HMH.VN | Hai Minh Corp | 0.01 | -0.02 | -0.02 |
| SAFE.JK | Steady Safe Tbk PT | 0.33 | -0.77 | -0.61 |
| SDMU.JK | Sidomulyo Selaras Tbk PT | 2.86 | 0.43 | 0.13 |
| TRUK.JK | Guna Timur Raya Tbk PT | 0.11 | 0.6 | 0.55 |
| VNS.VN | Vietnam Sun Corp | 0.4 | 0.06 | 0.05 |
| WEHA.JK | WEHA Transportasi Indonesia Tbk PT | 0.61 | 0.97 | 0.64 |
| ZBRA.JK | Zebra Nusantara Tbk PT | 8.81 | 0.31 | 0.04 |
| Low | High | |
| Unlevered beta | 0.04 | 0.12 |
| Relevered beta | 0.04 | 0.15 |
| Adjusted relevered beta | 0.36 | 0.43 |
LRNA.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 LRNA.JK:
cost_of_equity (10.45%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.36) + 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.