SMRA.JK WACC - Weighted Average Cost of Capital
The WACC of Summarecon Agung Tbk PT (SMRA.JK) is 9.4%.
| Range | Selected | |
| Cost of equity | 14.0% - 17.5% | 15.75% |
| Tax rate | 0.4% - 0.7% | 0.55% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.9% - 11.0% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.94 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.0% | 17.5% |
| Tax rate | 0.4% | 0.7% |
| Debt/Equity ratio | 1.58 | 1.58 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.9% | 11.0% |
| Selected WACC | 9.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SMRA.JK | Summarecon Agung Tbk PT | 1.58 | 0.97 | 0.38 |
| APLN.JK | Agung Podomoro Land Tbk PT | 2.51 | 1.48 | 0.42 |
| ASRI.JK | ALAM SUTERA REALTY Tbk PT | 2.24 | 1.6 | 0.5 |
| BSDE.JK | Bumi Serpong Damai Tbk PT | 0.77 | 1.07 | 0.61 |
| CTRA.JK | Ciputra Development Tbk PT | 0.44 | 1.11 | 0.78 |
| DILD.JK | Intiland Development Tbk PT | 2.79 | 1.18 | 0.31 |
| DMAS.JK | Puradelta Lestari Tbk PT | 0.07 | 0.6 | 0.56 |
| JRPT.JK | Jaya Real Property Tbk PT | 0 | 0.14 | 0.14 |
| MDLN.JK | Modernland Realty Tbk PT | 10.27 | 0.15 | 0.01 |
| MTLA.JK | Metropolitan Land Tbk PT | 0.3 | 0.4 | 0.31 |
| Low | High | |
| Unlevered beta | 0.35 | 0.45 |
| Relevered beta | 0.91 | 1.16 |
| Adjusted relevered beta | 0.94 | 1.11 |
SMRA.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 SMRA.JK:
cost_of_equity (15.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.94) + 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.