SULI.JK WACC - Weighted Average Cost of Capital
The WACC of SLJ Global Tbk PT (SULI.JK) is 10.1%.
| Range | Selected | |
| Cost of equity | 10.0% - 11.5% | 10.75% |
| Tax rate | 3.4% - 9.0% | 6.2% |
| Cost of debt | 4.0% - 7.2% | 5.6% |
| WACC | 9.3% - 10.9% | 10.1% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.43 | 0.44 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 11.5% |
| Tax rate | 3.4% | 9.0% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 7.2% |
| After-tax WACC | 9.3% | 10.9% |
| Selected WACC | 10.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SULI.JK | SLJ Global Tbk PT | 0.13 | 0.48 | 0.42 |
| 002043.SZ | Dehua TB New Decoration Material Co Ltd | 0.04 | 1 | 0.97 |
| 002820.KS | Sunchang Corp | 5.44 | -0.09 | -0.02 |
| 008250.KS | Eagon Industrial Co Ltd | 2.35 | 0.46 | 0.14 |
| 7898.T | Wood One Co Ltd | 4.92 | 0.75 | 0.13 |
| 7905.T | Daiken Corp | 0.38 | -0.32 | -0.24 |
| BRI.AX | Big River Industries Ltd | 0.65 | 0.2 | 0.12 |
| IFII.JK | Indonesia Fibreboard Industry PT | 0.14 | 0.39 | 0.34 |
| INRU.JK | Toba Pulp Lestari Tbk PT | 4.12 | 0.75 | 0.15 |
| KAYU.JK | Darmi Bersaudara Tbk PT | 0.66 | -0.9 | -0.56 |
| Low | High | |
| Unlevered beta | 0.13 | 0.15 |
| Relevered beta | 0.15 | 0.16 |
| Adjusted relevered beta | 0.43 | 0.44 |
SULI.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 SULI.JK:
cost_of_equity (10.75%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.43) + 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.