The WACC of Phapros Tbk PT (PEHA.JK) is 7.1%.
Range | Selected | |
Cost of equity | 13.0% - 18.0% | 15.5% |
Tax rate | 16.1% - 20.8% | 18.45% |
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 | 0.81 | 1.17 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.0% | 18.0% |
Tax rate | 16.1% | 20.8% |
Debt/Equity ratio | 2.78 | 2.78 |
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 |
PEHA.JK | Phapros Tbk PT | 2.78 | 0.91 | 0.28 |
002800.KQ | Sinsin Pharmaceutical Co Ltd | 0.52 | 0.13 | 0.09 |
009300.KQ | Sam-A Pharm Co Ltd | 0.11 | 0.1 | 0.09 |
106190.KQ | High Tech Pharm Co Ltd | 0.06 | 0.13 | 0.13 |
897.HK | Wai Yuen Tong Medicine Holdings Ltd | 1.61 | 0.09 | 0.04 |
DVLA.JK | Darya-Varia Laboratoria Tbk PT | 0 | 0.45 | 0.45 |
KAEF.JK | Kimia Farma Tbk PT | 2.05 | 1.44 | 0.54 |
MERK.JK | Merck Tbk PT | 0.02 | 0.42 | 0.41 |
PYFA.JK | Pyridam Farma Tbk PT | 1.55 | 1.46 | 0.65 |
SOHO.JK | SOHO Global Health PT | 0 | 0.37 | 0.37 |
Low | High | |
Unlevered beta | 0.22 | 0.39 |
Relevered beta | 0.72 | 1.25 |
Adjusted relevered beta | 0.81 | 1.17 |
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 PEHA.JK:
cost_of_equity (15.50%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.81) + 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.