SILO.JK WACC - Weighted Average Cost of Capital
The WACC of Siloam International Hospitals Tbk PT (SILO.JK) is 12.5%.
| Range | Selected | |
| Cost of equity | 12.1% - 14.6% | 13.35% |
| Tax rate | 27.9% - 28.9% | 28.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 11.3% - 13.7% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.69 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.1% | 14.6% |
| Tax rate | 27.9% | 28.9% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 11.3% | 13.7% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SILO.JK | Siloam International Hospitals Tbk PT | 0.09 | 0.56 | 0.53 |
| 2374.T | Saint-Care Holding Corp | 0.24 | 0.57 | 0.49 |
| 4009.SR | Middle East Healthcare Company PJSC | 0.44 | 1.87 | 1.42 |
| CARE.JK | PT Metro Healthcare Indonesia Tbk | 0.12 | 0.9 | 0.83 |
| EHE.AX | Estia Health Ltd | 0.16 | -0.27 | -0.24 |
| HEAL.JK | Medikaloka Hermina Tbk PT | 0.15 | 0.65 | 0.59 |
| MIKA.JK | Mitra Keluarga Karyasehat Tbk PT | 0 | 0.37 | 0.37 |
| REG.AX | Regis Healthcare Ltd | 0 | 1.52 | 1.52 |
| SAME.JK | Sarana Meditama Metropolitan Tbk PT | 0.2 | 0.84 | 0.73 |
| SRAJ.JK | Sejahteraraya Anugrahjaya Tbk PT | 0.05 | -0.86 | -0.83 |
| Low | High | |
| Unlevered beta | 0.51 | 0.65 |
| Relevered beta | 0.54 | 0.69 |
| Adjusted relevered beta | 0.69 | 0.79 |
SILO.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 SILO.JK:
cost_of_equity (13.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.69) + 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.