MAPB.JK WACC - Weighted Average Cost of Capital

The WACC of Map Boga Adiperkasa Tbk PT (MAPB.JK) is 9.8%.

The Cost of Equity of Map Boga Adiperkasa Tbk PT (MAPB.JK) is 10.85%.

The Cost of Debt of Map Boga Adiperkasa Tbk PT (MAPB.JK) is 5.50%.

	Range	Selected
Cost of equity	9.90% - 11.80%	10.85%
Tax rate	24.30% - 27.30%	25.80%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.8% - 10.7%	9.8%

WACC

MAPB.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.41	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	11.80%

Tax rate	24.30%	27.30%
Debt/Equity ratio	0.19	0.19
Cost of debt	4.00%	7.00%

After-tax WACC	8.8%	10.7%


Selected WACC	9.8%

MAPB.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 MAPB.JK:

cost_of_equity (10.85%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.41) + 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.