PEHA.JK
Phapros Tbk PT
Price:  
320 
IDR
Volume:  
13,300
Indonesia | Pharmaceuticals

PEHA.JK WACC - Weighted Average Cost of Capital

The WACC of Phapros Tbk PT (PEHA.JK) is 7.1%.

The Cost of Equity of Phapros Tbk PT (PEHA.JK) is 15.5%.
The Cost of Debt of Phapros Tbk PT (PEHA.JK) is 5%.

RangeSelected
Cost of equity13.0% - 18.0%15.5%
Tax rate16.1% - 20.8%18.45%
Cost of debt5.0% - 5.0%5%
WACC6.5% - 7.7%7.1%
WACC

PEHA.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.811.17
Additional risk adjustments0.0%0.5%
Cost of equity13.0%18.0%
Tax rate16.1%20.8%
Debt/Equity ratio
2.782.78
Cost of debt5.0%5.0%
After-tax WACC6.5%7.7%
Selected WACC7.1%

PEHA.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 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.