UCID.JK
Uni-charm Indonesia PT
Price:  
565.00 
IDR
Volume:  
300,300.00
Indonesia | Household Products
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UCID.JK WACC - Weighted Average Cost of Capital

The WACC of Uni-charm Indonesia PT (UCID.JK) is 15.5%.

The Cost of Equity of Uni-charm Indonesia PT (UCID.JK) is 16.60%.
The Cost of Debt of Uni-charm Indonesia PT (UCID.JK) is 5.50%.

Range Selected
Cost of equity 14.80% - 18.40% 16.60%
Tax rate 24.20% - 25.50% 24.85%
Cost of debt 4.00% - 7.00% 5.50%
WACC 13.8% - 17.2% 15.5%
WACC

UCID.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 1.04 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.80% 18.40%
Tax rate 24.20% 25.50%
Debt/Equity ratio 0.1 0.1
Cost of debt 4.00% 7.00%
After-tax WACC 13.8% 17.2%
Selected WACC 15.5%

UCID.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 UCID.JK:

cost_of_equity (16.60%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.04) + 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.