MAPI.JK WACC - Weighted Average Cost of Capital
The WACC of Mitra Adiperkasa Tbk PT (MAPI.JK) is 10.8%.
| Range | Selected | |
| Cost of equity | 12.7% - 14.8% | 13.75% |
| Tax rate | 22.9% - 25.2% | 24.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 10.1% - 11.5% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.78 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.7% | 14.8% |
| Tax rate | 22.9% | 25.2% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 10.1% | 11.5% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAPI.JK | Mitra Adiperkasa Tbk PT | 0.42 | 0.82 | 0.62 |
| 000417.SZ | Hefei Department Store Group Co Ltd | 0.45 | 0.73 | 0.55 |
| 002187.SZ | Guangzhou Grandbuy Co Ltd | 0.67 | 1.03 | 0.68 |
| 2903.TW | Far Eastern Department Stores Ltd | 2.22 | 0.36 | 0.14 |
| 600280.SS | Nanjing Central Emporium Group Stocks Co Ltd | 1.59 | 1.2 | 0.54 |
| 600723.SS | Beijing Capital Retailing Group Co Ltd | 0.03 | 1.03 | 1.01 |
| 984.HK | AEON Stores Hong Kong Co Ltd | 38.39 | 0.88 | 0.03 |
| LPPF.JK | Matahari Department Store Tbk PT | 0.74 | 0.45 | 0.29 |
| MYR.AX | Myer Holdings Ltd | 1.53 | 1.12 | 0.52 |
| RALS.JK | Ramayana Lestari Sentosa Tbk PT | 0.18 | 0.56 | 0.49 |
| Low | High | |
| Unlevered beta | 0.51 | 0.55 |
| Relevered beta | 0.67 | 0.72 |
| Adjusted relevered beta | 0.78 | 0.81 |
MAPI.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 MAPI.JK:
cost_of_equity (13.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.78) + 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.