TEBE.JK
Dana Brata Luhur PT
Price:  
635 
IDR
Volume:  
717,900
Indonesia | Transportation Infrastructure

TEBE.JK WACC - Weighted Average Cost of Capital

The WACC of Dana Brata Luhur PT (TEBE.JK) is 9.6%.

The Cost of Equity of Dana Brata Luhur PT (TEBE.JK) is 15.25%.
The Cost of Debt of Dana Brata Luhur PT (TEBE.JK) is 5%.

RangeSelected
Cost of equity13.3% - 17.2%15.25%
Tax rate22.1% - 22.3%22.2%
Cost of debt5.0% - 5.0%5%
WACC8.6% - 10.5%9.6%
WACC

TEBE.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.851.07
Additional risk adjustments0.0%0.5%
Cost of equity13.3%17.2%
Tax rate22.1%22.3%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC8.6%10.5%
Selected WACC9.6%

TEBE.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 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.