MPPA.JK WACC - Weighted Average Cost of Capital
The WACC of Matahari Putra Prima Tbk PT (MPPA.JK) is 7.1%.
| Range | Selected | |
| Cost of equity | 10.7% - 14.7% | 12.7% |
| Tax rate | 6.0% - 7.6% | 6.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.5% - 7.7% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.52 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 14.7% |
| Tax rate | 6.0% | 7.6% |
| Debt/Equity ratio | 2.25 | 2.25 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.5% | 7.7% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MPPA.JK | Matahari Putra Prima Tbk PT | 2.25 | 1.31 | 0.43 |
| 139480.KS | E-Mart Inc | 4.95 | 0.13 | 0.02 |
| 602.HK | Jiahua Stores Holdings Ltd | 14.09 | 1.29 | 0.09 |
| 603031.SS | Anhui Andeli Department Store Co Ltd | 0.37 | 1.07 | 0.8 |
| 8289.T | Olympic Group Corp | 3.35 | 0.37 | 0.09 |
| CARS.JK | Industri Dan Perdagangan Bintraco Dharma Tbk PT | 1.23 | 0.2 | 0.1 |
| HERO.JK | Hero Supermarket Tbk PT | 0.95 | 0.01 | 0 |
| MIDI.JK | Midi Utama Indonesia Tbk PT | 0.05 | 0.7 | 0.67 |
| SEM.KL | 7-Eleven Malaysia Holdings Bhd | 0.58 | -0.13 | -0.08 |
| SPENCERS.NS | Spencer's Retail Ltd | 2.8 | 1.9 | 0.53 |
| Low | High | |
| Unlevered beta | 0.09 | 0.23 |
| Relevered beta | 0.28 | 0.7 |
| Adjusted relevered beta | 0.52 | 0.8 |
MPPA.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 MPPA.JK:
cost_of_equity (12.70%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.52) + 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.