SIDO.JK WACC - Weighted Average Cost of Capital
The WACC of Industri Jamu dan Farmasi Sido Muncul Tbk PT (SIDO.JK) is 12.3%.
| Range | Selected | |
| Cost of equity | 11.0% - 13.6% | 12.3% |
| Tax rate | 22.1% - 22.2% | 22.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 11.0% - 13.6% | 12.3% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.55 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 13.6% |
| Tax rate | 22.1% | 22.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 11.0% | 13.6% |
| Selected WACC | 12.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIDO.JK | Industri Jamu dan Farmasi Sido Muncul Tbk PT | 0 | 0.38 | 0.38 |
| 003006.SZ | Chongqing Baiya Sanitory Products Co Ltd | 0 | 0.56 | 0.56 |
| 048410.KQ | Hyundai Bioscience Co Ltd | 0.01 | 0.17 | 0.17 |
| 300740.SZ | Yujiahui Co Ltd | 0.28 | 2.02 | 1.66 |
| 300791.SZ | Sirio Pharma Co Ltd | 0.23 | 1.17 | 0.99 |
| 4919.T | Milbon Co Ltd | 0 | 0.27 | 0.27 |
| 605009.SS | Hangzhou Haoyue Personal Care Co Ltd | 0.09 | 1.03 | 0.96 |
| KINO.JK | Kino Indonesia Tbk PT | 1.08 | 0.15 | 0.08 |
| MBTO.JK | Martina Berto Tbk PT | 2.04 | 0.35 | 0.13 |
| TCID.JK | Mandom Indonesia Tbk PT | 0.01 | 0.49 | 0.49 |
| Low | High | |
| Unlevered beta | 0.34 | 0.52 |
| Relevered beta | 0.33 | 0.52 |
| Adjusted relevered beta | 0.55 | 0.68 |
SIDO.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 SIDO.JK:
cost_of_equity (12.30%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.55) + 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.