SPMA.JK
Suparma Tbk PT
Price:  
252 
IDR
Volume:  
887,900
Indonesia | Paper & Forest Products

SPMA.JK WACC - Weighted Average Cost of Capital

The WACC of Suparma Tbk PT (SPMA.JK) is 11.7%.

The Cost of Equity of Suparma Tbk PT (SPMA.JK) is 17.35%.
The Cost of Debt of Suparma Tbk PT (SPMA.JK) is 5.5%.

RangeSelected
Cost of equity14.4% - 20.3%17.35%
Tax rate22.0% - 22.1%22.05%
Cost of debt4.0% - 7.0%5.5%
WACC9.5% - 13.9%11.7%
WACC

SPMA.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.981.43
Additional risk adjustments0.0%0.5%
Cost of equity14.4%20.3%
Tax rate22.0%22.1%
Debt/Equity ratio
0.760.76
Cost of debt4.0%7.0%
After-tax WACC9.5%13.9%
Selected WACC11.7%

SPMA.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 SPMA.JK:

cost_of_equity (17.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.98) + 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.