OMRE.JK WACC - Weighted Average Cost of Capital

The WACC of Indonesia Prima Property Tbk PT (OMRE.JK) is 10.4%.

The Cost of Equity of Indonesia Prima Property Tbk PT (OMRE.JK) is 10.50%.

The Cost of Debt of Indonesia Prima Property Tbk PT (OMRE.JK) is 5.60%.

	Range	Selected
Cost of equity	9.30% - 11.70%	10.50%
Tax rate	0.30% - 0.70%	0.50%
Cost of debt	4.00% - 7.20%	5.60%
WACC	9.1% - 11.6%	10.4%

WACC

OMRE.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.34	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.70%

Tax rate	0.30%	0.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	7.20%

After-tax WACC	9.1%	11.6%


Selected WACC	10.4%

OMRE.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 OMRE.JK:

cost_of_equity (10.50%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.34) + 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.