RANC.JK WACC - Weighted Average Cost of Capital
The WACC of Supra Boga Lestari Tbk PT (RANC.JK) is 9.2%.
| Range | Selected | |
| Cost of equity | 10.3% - 12.8% | 11.55% |
| Tax rate | 10.4% - 17.1% | 13.75% |
| Cost of debt | 4.0% - 7.7% | 5.85% |
| WACC | 7.9% - 10.5% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.47 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 12.8% |
| Tax rate | 10.4% | 17.1% |
| Debt/Equity ratio | 0.56 | 0.56 |
| Cost of debt | 4.0% | 7.7% |
| After-tax WACC | 7.9% | 10.5% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RANC.JK | Supra Boga Lestari Tbk PT | 0.56 | 0.46 | 0.31 |
| 2360.HK | Best Mart 360 Holdings Ltd | 0.17 | 0.18 | 0.16 |
| 2683.T | Uoki Co Ltd | 0.23 | 0.09 | 0.08 |
| 2687.T | CVS Bay Area Inc | 1.83 | 0.57 | 0.23 |
| 759.HK | Cec International Holdings Ltd | 3.06 | 0.39 | 0.11 |
| 7601.T | Poplar Co Ltd | 0.24 | 0.75 | 0.62 |
| 974.HK | China Shun Ke Long Holdings Ltd | 0.58 | 0.06 | 0.04 |
| AMRT.JK | Sumber Alfaria Trijaya Tbk PT | 0.02 | 1.12 | 1.1 |
| HERO.JK | Hero Supermarket Tbk PT | 0.95 | 0.01 | 0 |
| MIDI.JK | Midi Utama Indonesia Tbk PT | 0.05 | 0.7 | 0.67 |
| Low | High | |
| Unlevered beta | 0.14 | 0.26 |
| Relevered beta | 0.21 | 0.39 |
| Adjusted relevered beta | 0.47 | 0.59 |
RANC.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 RANC.JK:
cost_of_equity (11.55%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.47) + 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.