MNCN.JK WACC - Weighted Average Cost of Capital
The WACC of Media Nusantara Citra Tbk PT (MNCN.JK) is 12.7%.
| Range | Selected | |
| Cost of equity | 14.3% - 18.3% | 16.3% |
| Tax rate | 18.5% - 19.5% | 19% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 11.0% - 14.4% | 12.7% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.98 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.3% | 18.3% |
| Tax rate | 18.5% | 19.5% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 11.0% | 14.4% |
| Selected WACC | 12.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MNCN.JK | Media Nusantara Citra Tbk PT | 0.44 | 1.27 | 0.94 |
| 300770.SZ | Guangdong South New Media Co Ltd | 0 | 1.09 | 1.09 |
| BHIT.JK | MNC Investama Tbk PT | 9.74 | 1.75 | 0.2 |
| BMTR.JK | Global Mediacom Tbk PT | 2.65 | 1.4 | 0.44 |
| EMTK.JK | Elang Mahkota Teknologi Tbk PT | 0.04 | 1.1 | 1.07 |
| HT1.AX | HT&E Ltd | 0.44 | 1.42 | 1.05 |
| MDIA.JK | Intermedia Capital Tbk PT | 1.79 | -0.19 | -0.08 |
| SCMA.JK | Surya Citra Media Tbk PT | 0 | 0.9 | 0.9 |
| SUNTV.NS | Sun Tv Network Ltd | 0 | 1 | 1 |
| VIVA.JK | Visi Media Asia Tbk PT | 18.8 | 0.12 | 0.01 |
| Low | High | |
| Unlevered beta | 0.72 | 0.96 |
| Relevered beta | 0.97 | 1.3 |
| Adjusted relevered beta | 0.98 | 1.2 |
MNCN.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 MNCN.JK:
cost_of_equity (16.30%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.98) + 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.