SKBM.JK
Sekar Bumi Tbk PT
Price:  
338 
IDR
Volume:  
47,900
Indonesia | Food Products

SKBM.JK WACC - Weighted Average Cost of Capital

The WACC of Sekar Bumi Tbk PT (SKBM.JK) is 7.9%.

The Cost of Equity of Sekar Bumi Tbk PT (SKBM.JK) is 10.95%.
The Cost of Debt of Sekar Bumi Tbk PT (SKBM.JK) is 7.95%.

RangeSelected
Cost of equity9.8% - 12.1%10.95%
Tax rate30.1% - 43.7%36.9%
Cost of debt4.0% - 11.9%7.95%
WACC6.4% - 9.4%7.9%
WACC

SKBM.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.410.5
Additional risk adjustments0.0%0.5%
Cost of equity9.8%12.1%
Tax rate30.1%43.7%
Debt/Equity ratio
0.950.95
Cost of debt4.0%11.9%
After-tax WACC6.4%9.4%
Selected WACC7.9%

SKBM.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 SKBM.JK:

cost_of_equity (10.95%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.41) + 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.