SKBM.JK WACC - Weighted Average Cost of Capital
The WACC of Sekar Bumi Tbk PT (SKBM.JK) is 7.9%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.1% | 10.95% |
| Tax rate | 30.1% - 43.7% | 36.9% |
| Cost of debt | 4.0% - 11.9% | 7.95% |
| WACC | 6.4% - 9.4% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.41 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.1% |
| Tax rate | 30.1% | 43.7% |
| Debt/Equity ratio | 0.95 | 0.95 |
| Cost of debt | 4.0% | 11.9% |
| After-tax WACC | 6.4% | 9.4% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SKBM.JK | Sekar Bumi Tbk PT | 0.95 | -0.92 | -0.56 |
| BUDI.JK | Budi Starch & Sweetener Tbk PT | 1.64 | 0.31 | 0.15 |
| COCO.JK | PT Wahana Interfood Nusantara Tbk | 1.79 | 1.11 | 0.5 |
| CPRO.JK | Central Proteina Prima Tbk PT | 0.56 | 0.25 | 0.18 |
| FOOD.JK | Sentra Food Indonesia Tbk PT | 0.12 | 0.07 | 0.06 |
| MGRO.JK | Mahkota Group Tbk PT | 0.91 | 0.37 | 0.23 |
| PALM.JK | Provident Agro Tbk PT | 0.7 | 0.11 | 0.07 |
| PCAR.JK | Prima Cakrawala Abadi Tbk PT | 0.37 | -0.25 | -0.2 |
| ROTI.JK | Nippon Indosari Corpindo Tbk PT | 0.12 | -0.1 | -0.1 |
| SKLT.JK | Sekar Laut Tbk PT | 0.18 | 0.18 | 0.16 |
| Low | High | |
| Unlevered beta | 0.07 | 0.15 |
| Relevered beta | 0.12 | 0.25 |
| Adjusted relevered beta | 0.41 | 0.5 |
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.