META.JK WACC - Weighted Average Cost of Capital

The WACC of Nusantara Infrastructure Tbk PT (META.JK) is 12.3%.

The Cost of Equity of Nusantara Infrastructure Tbk PT (META.JK) is 13.20%.

The Cost of Debt of Nusantara Infrastructure Tbk PT (META.JK) is 5.50%.

	Range	Selected
Cost of equity	12.10% - 14.30%	13.20%
Tax rate	25.60% - 35.50%	30.55%
Cost of debt	4.00% - 7.00%	5.50%
WACC	11.2% - 13.3%	12.3%

WACC

META.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.7	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	14.30%

Tax rate	25.60%	35.50%
Debt/Equity ratio	0.11	0.11
Cost of debt	4.00%	7.00%

After-tax WACC	11.2%	13.3%


Selected WACC	12.3%

META.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 META.JK:

cost_of_equity (13.20%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.7) + 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.