TDPM.JK
Tridomain Performance Materials Tbk PT
Price:  
119.00 
IDR
Volume:  
2,373,300.00
Indonesia | Chemicals
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TDPM.JK WACC - Weighted Average Cost of Capital

The WACC of Tridomain Performance Materials Tbk PT (TDPM.JK) is 8.2%.

The Cost of Equity of Tridomain Performance Materials Tbk PT (TDPM.JK) is 13.45%.
The Cost of Debt of Tridomain Performance Materials Tbk PT (TDPM.JK) is 5.00%.

Range Selected
Cost of equity 12.20% - 14.70% 13.45%
Tax rate 14.20% - 20.40% 17.30%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 8.7% 8.2%
WACC

TDPM.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.71 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.20% 14.70%
Tax rate 14.20% 20.40%
Debt/Equity ratio 1.29 1.29
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 8.7%
Selected WACC 8.2%

TDPM.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 TDPM.JK:

cost_of_equity (13.45%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.71) + 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.