PTSP.JK
Pioneerindo Gourmet International Tbk PT
Price:  
1,010 
IDR
Volume:  
79,100
Indonesia | Hotels, Restaurants & Leisure

PTSP.JK WACC - Weighted Average Cost of Capital

The WACC of Pioneerindo Gourmet International Tbk PT (PTSP.JK) is 10.0%.

The Cost of Equity of Pioneerindo Gourmet International Tbk PT (PTSP.JK) is 11.7%.
The Cost of Debt of Pioneerindo Gourmet International Tbk PT (PTSP.JK) is 5.5%.

RangeSelected
Cost of equity10.7% - 12.7%11.7%
Tax rate6.9% - 11.5%9.2%
Cost of debt4.0% - 7.0%5.5%
WACC9.0% - 11.1%10.0%
WACC

PTSP.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.520.58
Additional risk adjustments0.0%0.5%
Cost of equity10.7%12.7%
Tax rate6.9%11.5%
Debt/Equity ratio
0.330.33
Cost of debt4.0%7.0%
After-tax WACC9.0%11.1%
Selected WACC10.0%

PTSP.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 PTSP.JK:

cost_of_equity (11.70%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.52) + 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.