SOHO.JK
SOHO Global Health PT
Price:  
680 
IDR
Volume:  
7,600
Indonesia | Pharmaceuticals

SOHO.JK WACC - Weighted Average Cost of Capital

The WACC of SOHO Global Health PT (SOHO.JK) is 12.4%.

The Cost of Equity of SOHO Global Health PT (SOHO.JK) is 12.4%.
The Cost of Debt of SOHO Global Health PT (SOHO.JK) is 5%.

RangeSelected
Cost of equity11.4% - 13.4%12.4%
Tax rate20.9% - 21.5%21.2%
Cost of debt5.0% - 5.0%5%
WACC11.4% - 13.4%12.4%
WACC

SOHO.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.610.65
Additional risk adjustments0.0%0.5%
Cost of equity11.4%13.4%
Tax rate20.9%21.5%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC11.4%13.4%
Selected WACC12.4%

SOHO.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 SOHO.JK:

cost_of_equity (12.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.61) + 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.