TRJA.JK WACC - Weighted Average Cost of Capital

The WACC of Transkon Jaya PT (TRJA.JK) is 8.4%.

The Cost of Equity of Transkon Jaya PT (TRJA.JK) is 16.25%.

The Cost of Debt of Transkon Jaya PT (TRJA.JK) is 5.50%.

	Range	Selected
Cost of equity	13.60% - 18.90%	16.25%
Tax rate	20.90% - 29.60%	25.25%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.9% - 9.9%	8.4%

WACC

TRJA.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.89	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	18.90%

Tax rate	20.90%	29.60%
Debt/Equity ratio	1.83	1.83
Cost of debt	4.00%	7.00%

After-tax WACC	6.9%	9.9%


Selected WACC	8.4%

TRJA.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 TRJA.JK:

cost_of_equity (16.25%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.89) + 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.