RIGS.JK WACC - Weighted Average Cost of Capital

The WACC of Rig Tenders Indonesia Tbk PT (RIGS.JK) is 10.7%.

The Cost of Equity of Rig Tenders Indonesia Tbk PT (RIGS.JK) is 100.40%.

The Cost of Debt of Rig Tenders Indonesia Tbk PT (RIGS.JK) is 7.00%.

	Range	Selected
Cost of equity	90.30% - 110.50%	100.40%
Tax rate	0.40% - 0.80%	0.60%
Cost of debt	7.00% - 7.00%	7.00%
WACC	10.3% - 11.1%	10.7%

WACC

RIGS.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	10.61	11.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	90.30%	110.50%

Tax rate	0.40%	0.80%
Debt/Equity ratio	24	24
Cost of debt	7.00%	7.00%

After-tax WACC	10.3%	11.1%


Selected WACC	10.7%

RIGS.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 RIGS.JK:

cost_of_equity (100.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (10.61) + 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.