MCAS.JK WACC - Weighted Average Cost of Capital

The WACC of M Cash Integrasi Tbk PT (MCAS.JK) is 11.6%.

The Cost of Equity of M Cash Integrasi Tbk PT (MCAS.JK) is 12.15%.

The Cost of Debt of M Cash Integrasi Tbk PT (MCAS.JK) is 11.20%.

	Range	Selected
Cost of equity	10.40% - 13.90%	12.15%
Tax rate	18.70% - 29.10%	23.90%
Cost of debt	4.00% - 18.40%	11.20%
WACC	9.4% - 13.8%	11.6%

WACC

MCAS.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.48	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.90%

Tax rate	18.70%	29.10%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	18.40%

After-tax WACC	9.4%	13.8%


Selected WACC	11.6%

MCAS.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 MCAS.JK:

cost_of_equity (12.15%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.48) + 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.