The WACC of Saratoga Investama Sedaya Tbk PT (SRTG.JK) is 14.8%.
Range | Selected | |
Cost of equity | 13.5% - 18.9% | 16.2% |
Tax rate | 7.4% - 14.6% | 11% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 12.3% - 17.3% | 14.8% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.87 | 1.27 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.5% | 18.9% |
Tax rate | 7.4% | 14.6% |
Debt/Equity ratio | 0.15 | 0.15 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 12.3% | 17.3% |
Selected WACC | 14.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SRTG.JK | Saratoga Investama Sedaya Tbk PT | 0.15 | 1.83 | 1.62 |
1697.HK | Shandong International Trust Co Ltd | 0.17 | 0.96 | 0.83 |
600053.SS | Kunwu Jiuding Investment Holdings Co Ltd | 0.01 | 1.6 | 1.59 |
AMOR.JK | Ashmore Asset Management Indonesia PT | 0.01 | 0.56 | 0.55 |
BPII.JK | Batavia Prosperindo Internasional Tbk PT | 0.24 | -0.07 | -0.06 |
CHJ.SI | Uni-Asia Group Ltd | 0.84 | 0.23 | 0.13 |
EDC.AX | Eildon Capital Ltd | 0 | 0.04 | 0.04 |
IDJ.VN | IDJ Vietnam Investment JSC | 0.19 | 1.8 | 1.53 |
PDL.AX | Pendal Group Ltd | 0.05 | 1.56 | 1.49 |
PPT.AX | Perpetual Ltd | 0.35 | 1.42 | 1.08 |
Low | High | |
Unlevered beta | 0.72 | 1.24 |
Relevered beta | 0.81 | 1.4 |
Adjusted relevered beta | 0.87 | 1.27 |
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.