SIMP.JK WACC - Weighted Average Cost of Capital
The WACC of Salim Ivomas Pratama Tbk PT (SIMP.JK) is 8.2%.
| Range | Selected | |
| Cost of equity | 12.5% - 15.0% | 13.75% |
| Tax rate | 37.4% - 39.2% | 38.3% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.2% - 9.3% | 8.2% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.74 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.5% | 15.0% |
| Tax rate | 37.4% | 39.2% |
| Debt/Equity ratio | 1.13 | 1.13 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.2% | 9.3% |
| Selected WACC | 8.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIMP.JK | Salim Ivomas Pratama Tbk PT | 1.13 | 0.72 | 0.42 |
| 136490.KS | Sunjin Co Ltd | 2.34 | 1.06 | 0.43 |
| COCO.JK | PT Wahana Interfood Nusantara Tbk | 2.02 | 1.17 | 0.52 |
| CPRO.JK | Central Proteina Prima Tbk PT | 0.58 | 0.21 | 0.16 |
| DMND.JK | Diamond Food Indonesia PT | 0 | 0.23 | 0.23 |
| GOOD.JK | Garudafood Putra Putri Jaya Tbk PT | 0.15 | 0.3 | 0.27 |
| JPFA.JK | Japfa Comfeed Indonesia Tbk PT | 0.62 | 0.64 | 0.46 |
| MYOR.JK | Mayora Indah Tbk PT | 0.17 | 0.83 | 0.75 |
| ROTI.JK | Nippon Indosari Corpindo Tbk PT | 0.12 | -0.1 | -0.09 |
| ULTJ.JK | Ultrajaya Milk Industry Tbk PT | 0 | 0.53 | 0.53 |
| Low | High | |
| Unlevered beta | 0.36 | 0.44 |
| Relevered beta | 0.61 | 0.76 |
| Adjusted relevered beta | 0.74 | 0.84 |
SIMP.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 SIMP.JK:
cost_of_equity (13.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.74) + 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.