The WACC of Dana Brata Luhur PT (TEBE.JK) is 9.6%.
Range | Selected | |
Cost of equity | 13.3% - 17.2% | 15.25% |
Tax rate | 22.1% - 22.3% | 22.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 8.6% - 10.5% | 9.6% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.85 | 1.07 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.3% | 17.2% |
Tax rate | 22.1% | 22.3% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 8.6% | 10.5% |
Selected WACC | 9.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
TEBE.JK | Dana Brata Luhur PT | 0.86 | 0.11 | 0.06 |
498.HK | PYI Corporation Ltd | 0.48 | 0.93 | 0.68 |
520155.BO | Starlog Enterprises Ltd | 0 | 0.2 | 0.2 |
533427.BO | VMS Industries Ltd | 0.25 | 0.83 | 0.7 |
6119.HK | Tian Yuan Group Holdings Ltd | 0.01 | 0.14 | 0.14 |
8502.HK | Ocean Line Port Development Ltd | 0.01 | 0.43 | 0.43 |
BBRM.JK | Pelayaran Nasional Bina Buana Raya Tbk PT | 0.11 | 0.64 | 0.59 |
DKFT.JK | Central Omega Resources Tbk PT | 0.33 | 1.27 | 1.01 |
DXP.VN | DoanXa Port JSC | 0.17 | 1.14 | 1.01 |
IPCC.JK | Indonesia Kendaraan Terminal Tbk PT | 0.23 | 0.47 | 0.39 |
IPCM.JK | Jasa Armada Indonesia Tbk PT | 0.06 | 0.46 | 0.44 |
Low | High | |
Unlevered beta | 0.43 | 0.59 |
Relevered beta | 0.78 | 1.1 |
Adjusted relevered beta | 0.85 | 1.07 |
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 TEBE.JK:
cost_of_equity (15.25%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.85) + 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.