SGER.JK WACC - Weighted Average Cost of Capital
The WACC of Sumber Global Energy Tbk PT (SGER.JK) is 11.0%.
| Range | Selected | |
| Cost of equity | 9.3% - 15.6% | 12.45% |
| Tax rate | 20.3% - 22.7% | 21.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 8.2% - 13.7% | 11.0% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.34 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.3% | 15.6% |
| Tax rate | 20.3% | 22.7% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 8.2% | 13.7% |
| Selected WACC | 11.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SGER.JK | Sumber Global Energy Tbk PT | 0.23 | 0.99 | 0.84 |
| 8374.TW | Ace Pillar Co Ltd | 0.09 | 1.03 | 0.96 |
| 9909.T | Aiko Corp | 0.88 | 1.16 | 0.69 |
| APII.JK | Arita Prima Indonesia Tbk PT | 0.8 | 0.04 | 0.02 |
| BTG.SI | HG Metal Manufacturing Ltd | 0.12 | 0.93 | 0.85 |
| HEXA.JK | Hexindo Adiperkasa Tbk PT | 0.41 | 1.04 | 0.78 |
| HKMU.JK | HK Metals Utama Tbk PT | 1.63 | 0 | 0 |
| INTA.JK | Intraco Penta Tbk PT | 90.63 | 0.74 | 0.01 |
| KOIN.JK | Kokoh Inti Arebama Tbk PT | 0.2 | -0.14 | -0.12 |
| TIRA.JK | Tira Austenite Tbk PT | 0.07 | -0.41 | -0.39 |
| Low | High | |
| Unlevered beta | 0.02 | 0.72 |
| Relevered beta | 0.01 | 0.85 |
| Adjusted relevered beta | 0.34 | 0.9 |
SGER.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 SGER.JK:
cost_of_equity (12.45%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.34) + 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.