SMGR.JK WACC - Weighted Average Cost of Capital
The WACC of Semen Indonesia (Persero) Tbk PT (SMGR.JK) is 11.4%.
| Range | Selected | |
| Cost of equity | 13.6% - 17.9% | 15.75% |
| Tax rate | 28.0% - 33.6% | 30.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 9.7% - 13.1% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.88 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.6% | 17.9% |
| Tax rate | 28.0% | 33.6% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 9.7% | 13.1% |
| Selected WACC | 11.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SMGR.JK | Semen Indonesia (Persero) Tbk PT | 0.57 | 1.76 | 1.26 |
| 1102.TW | Asia Cement Corp | 0.68 | 0.41 | 0.28 |
| 1252.HK | China Tianrui Group Cement Co Ltd | 24.31 | 0.23 | 0.01 |
| ACC.NS | ACC Ltd | 0.01 | 0.77 | 0.76 |
| CTTH.JK | Citatah Tbk PT | 6.26 | 0.55 | 0.1 |
| INTP.JK | Indocement Tunggal Prakarsa Tbk PT | 0.12 | 1.16 | 1.07 |
| SMBR.JK | Semen Baturaja (Persero) Tbk PT | 0.3 | 1.57 | 1.29 |
| SMCB.JK | Solusi Bangun Indonesia Tbk PT | 0.31 | 0.75 | 0.62 |
| WSBP.JK | Waskita Beton Precast Tbk PT | 3.96 | 2.02 | 0.54 |
| WTON.JK | Wijaya Karya Beton Tbk PT | 0.66 | 2.07 | 1.42 |
| Low | High | |
| Unlevered beta | 0.59 | 0.89 |
| Relevered beta | 0.82 | 1.24 |
| Adjusted relevered beta | 0.88 | 1.16 |
SMGR.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 SMGR.JK:
cost_of_equity (15.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.88) + 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.