MRAT.JK WACC - Weighted Average Cost of Capital
The WACC of Mustika Ratu Tbk PT (MRAT.JK) is 12.5%.
| Range | Selected | |
| Cost of equity | 11.3% - 15.6% | 13.45% |
| Tax rate | 22.0% - 23.2% | 22.6% |
| Cost of debt | 4.0% - 26.6% | 15.3% |
| WACC | 6.6% - 18.4% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.6 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 15.6% |
| Tax rate | 22.0% | 23.2% |
| Debt/Equity ratio | 1.33 | 1.33 |
| Cost of debt | 4.0% | 26.6% |
| After-tax WACC | 6.6% | 18.4% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MRAT.JK | Mustika Ratu Tbk PT | 1.33 | 0.87 | 0.43 |
| 065170.KQ | Next BT Co Ltd | 0.24 | -0.56 | -0.47 |
| 123690.KS | Hankook Cosmetics Co Ltd | 0.06 | 0.53 | 0.51 |
| 1731.TW | Maywufa Co Ltd | 0.22 | 0.3 | 0.26 |
| 6630.T | Ya-Man Ltd | 0.01 | 0.42 | 0.41 |
| 6893.HK | Hin Sang Group (International) Holding Co Ltd | 1.63 | 0.16 | 0.07 |
| KINO.JK | Kino Indonesia Tbk PT | 1.19 | 0.09 | 0.04 |
| MBTO.JK | Martina Berto Tbk PT | 2.15 | 0.27 | 0.1 |
| MCP.AX | McPherson's Ltd | 0.51 | 0.65 | 0.47 |
| TCID.JK | Mandom Indonesia Tbk PT | 0.01 | 0.47 | 0.46 |
| Low | High | |
| Unlevered beta | 0.2 | 0.42 |
| Relevered beta | 0.4 | 0.85 |
| Adjusted relevered beta | 0.6 | 0.9 |
MRAT.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 MRAT.JK:
cost_of_equity (13.45%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.6) + 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.