TINS.JK WACC - Weighted Average Cost of Capital

The WACC of Timah Tbk PT (TINS.JK) is 14.5%.

The Cost of Equity of Timah Tbk PT (TINS.JK) is 17.15%.

The Cost of Debt of Timah Tbk PT (TINS.JK) is 5.50%.

	Range	Selected
Cost of equity	15.90% - 18.40%	17.15%
Tax rate	24.70% - 25.20%	24.95%
Cost of debt	4.00% - 7.00%	5.50%
WACC	13.3% - 15.8%	14.5%

WACC

TINS.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	1.17	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.90%	18.40%

Tax rate	24.70%	25.20%
Debt/Equity ratio	0.25	0.25
Cost of debt	4.00%	7.00%

After-tax WACC	13.3%	15.8%


Selected WACC	14.5%

TINS.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 TINS.JK:

cost_of_equity (17.15%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.17) + 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.