TCPI.JK WACC - Weighted Average Cost of Capital
The WACC of Transcoal Pacific Tbk PT (TCPI.JK) is 10.8%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.3% | 11.05% |
| Tax rate | 0.7% - 0.9% | 0.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.6% - 12.0% | 10.8% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.4 | 0.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.3% |
| Tax rate | 0.7% | 0.9% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.6% | 12.0% |
| Selected WACC | 10.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TCPI.JK | Transcoal Pacific Tbk PT | 0.04 | 0.53 | 0.51 |
| 1145.HK | Courage Investment Group Ltd | 0 | 0.05 | 0.05 |
| 2601.TW | First Steamship Co Ltd | 3.8 | 0.55 | 0.11 |
| 3683.HK | Great Harvest Maeta Group Holdings Ltd | 4.4 | 0.08 | 0.01 |
| BLTA.JK | Berlian Laju Tanker Tbk PT | 2.4 | 0.29 | 0.09 |
| MBSS.JK | Mitrabahtera Segara Sejati Tbk PT | 1631.72 | 0.2 | 0 |
| NELY.JK | Pelayaran Nelly Dwi Putri Tbk PT | 0.17 | 0.88 | 0.75 |
| PSSI.JK | Pelita Samudera Shipping Tbk PT | 0.17 | 0.52 | 0.44 |
| TMAS.JK | PT Temas Tbk | 0.16 | 0.21 | 0.18 |
| TPMA.JK | Trans Power Marine Tbk PT | 0.69 | 0.79 | 0.47 |
| Low | High | |
| Unlevered beta | 0.1 | 0.29 |
| Relevered beta | 0.1 | 0.3 |
| Adjusted relevered beta | 0.4 | 0.53 |
TCPI.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 TCPI.JK:
cost_of_equity (11.05%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.4) + 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.