POWR.JK
Cikarang Listrindo Tbk PT
Price:  
695 
IDR
Volume:  
1,338,600
Indonesia | Independent Power and Renewable Electricity Producers

POWR.JK WACC - Weighted Average Cost of Capital

The WACC of Cikarang Listrindo Tbk PT (POWR.JK) is 9.0%.

The Cost of Equity of Cikarang Listrindo Tbk PT (POWR.JK) is 12.75%.
The Cost of Debt of Cikarang Listrindo Tbk PT (POWR.JK) is 5.5%.

RangeSelected
Cost of equity11.6% - 13.9%12.75%
Tax rate28.3% - 29.9%29.1%
Cost of debt4.0% - 7.0%5.5%
WACC7.9% - 10.1%9.0%
WACC

POWR.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.630.71
Additional risk adjustments0.0%0.5%
Cost of equity11.6%13.9%
Tax rate28.3%29.9%
Debt/Equity ratio
0.730.73
Cost of debt4.0%7.0%
After-tax WACC7.9%10.1%
Selected WACC9.0%

POWR.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 POWR.JK:

cost_of_equity (12.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.63) + 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.