PANS.JK WACC - Weighted Average Cost of Capital

The WACC of Panin Sekuritas Tbk PT (PANS.JK) is 10.9%.

The Cost of Equity of Panin Sekuritas Tbk PT (PANS.JK) is 11.20%.

The Cost of Debt of Panin Sekuritas Tbk PT (PANS.JK) is 5.50%.

	Range	Selected
Cost of equity	10.30% - 12.10%	11.20%
Tax rate	20.10% - 21.80%	20.95%
Cost of debt	4.00% - 7.00%	5.50%
WACC	10.0% - 11.8%	10.9%

WACC

PANS.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.46	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	12.10%

Tax rate	20.10%	21.80%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	7.00%

After-tax WACC	10.0%	11.8%


Selected WACC	10.9%

PANS.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 PANS.JK:

cost_of_equity (11.20%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.46) + 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.