POLL.JK WACC - Weighted Average Cost of Capital
The WACC of Pollux Properti Indonesia Tbk PT (POLL.JK) is 8.7%.
| Range | Selected | |
| Cost of equity | 10.9% - 13.8% | 12.35% |
| Tax rate | 6.4% - 7.9% | 7.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.3% - 10.1% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.54 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.9% | 13.8% |
| Tax rate | 6.4% | 7.9% |
| Debt/Equity ratio | 1.01 | 1.01 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.3% | 10.1% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| POLL.JK | Pollux Properti Indonesia Tbk PT | 1.01 | -0.12 | -0.06 |
| AKKU.JK | Anugerah Kagum Karya Utama Tbk PT | 0.42 | 1.08 | 0.78 |
| BAPI.JK | Bhakti Agung Propertindo PT Tbk | 2.95 | 0.93 | 0.25 |
| DADA.JK | Diamond Citra Propertindo PT | 1.66 | 0.64 | 0.25 |
| ELTY.JK | Bakrieland Development Tbk PT | 2.36 | 1.07 | 0.34 |
| FORZ.JK | Forza Land Indonesia Tbk PT | 0.71 | 0.06 | 0.04 |
| MKPI.JK | Metropolitan Kentjana Tbk PT | 0 | 0.5 | 0.5 |
| MPRO.JK | Maha Properti Indonesia Tbk PT | 0.02 | -0.04 | -0.04 |
| RODA.JK | Pikko Land Development Tbk PT | 1.14 | -0.02 | -0.01 |
| SATU.JK | Kota Satu Properti Tbk PT | 0.25 | 0.7 | 0.57 |
| Low | High | |
| Unlevered beta | 0.17 | 0.29 |
| Relevered beta | 0.31 | 0.55 |
| Adjusted relevered beta | 0.54 | 0.7 |
POLL.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 POLL.JK:
cost_of_equity (12.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.54) + 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.