SRTG.JK
Saratoga Investama Sedaya Tbk PT
Price:  
1,620 
IDR
Volume:  
2,743,500
Indonesia | Capital Markets

SRTG.JK WACC - Weighted Average Cost of Capital

The WACC of Saratoga Investama Sedaya Tbk PT (SRTG.JK) is 14.8%.

The Cost of Equity of Saratoga Investama Sedaya Tbk PT (SRTG.JK) is 16.2%.
The Cost of Debt of Saratoga Investama Sedaya Tbk PT (SRTG.JK) is 5.5%.

RangeSelected
Cost of equity13.5% - 18.9%16.2%
Tax rate7.4% - 14.6%11%
Cost of debt4.0% - 7.0%5.5%
WACC12.3% - 17.3%14.8%
WACC

SRTG.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.871.27
Additional risk adjustments0.0%0.5%
Cost of equity13.5%18.9%
Tax rate7.4%14.6%
Debt/Equity ratio
0.150.15
Cost of debt4.0%7.0%
After-tax WACC12.3%17.3%
Selected WACC14.8%

SRTG.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 SRTG.JK:

cost_of_equity (16.20%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.87) + 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.