The WACC of Pioneerindo Gourmet International Tbk PT (PTSP.JK) is 10.0%.
Range | Selected | |
Cost of equity | 10.7% - 12.7% | 11.7% |
Tax rate | 6.9% - 11.5% | 9.2% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 9.0% - 11.1% | 10.0% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.52 | 0.58 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.7% | 12.7% |
Tax rate | 6.9% | 11.5% |
Debt/Equity ratio | 0.33 | 0.33 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 9.0% | 11.1% |
Selected WACC | 10.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
PTSP.JK | Pioneerindo Gourmet International Tbk PT | 0.33 | 0.56 | 0.43 |
1869.HK | Li Bao Ge Group Ltd | 0.47 | -0.04 | -0.03 |
5OI.SI | Japan Foods Holding Ltd | 1.35 | -0.36 | -0.16 |
7674.T | Natty Swanky Co Ltd | 0.11 | 0.31 | 0.28 |
8371.HK | Taste Gourmet Group Ltd | 0.58 | 0.43 | 0.28 |
8475.HK | K Group Holdings Ltd | 2.24 | 1.09 | 0.36 |
9973.T | Kozosushi Co Ltd | 0.1 | 0.3 | 0.27 |
FAST.JK | Fast Food Indonesia Tbk PT | 0.88 | 1.47 | 0.81 |
MAPB.JK | Map Boga Adiperkasa Tbk PT | 0.13 | -0.09 | -0.08 |
PZZA.JK | Sarimelati Kencana Tbk PT | 1.23 | 0.29 | 0.14 |
Low | High | |
Unlevered beta | 0.22 | 0.28 |
Relevered beta | 0.28 | 0.37 |
Adjusted relevered beta | 0.52 | 0.58 |
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.