URBN.JK
Urban Jakarta Propertindo Tbk PT
Price:  
134.00 
IDR
Volume:  
63,900.00
Indonesia | Real Estate Management & Development
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URBN.JK WACC - Weighted Average Cost of Capital

The WACC of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 7.2%.

The Cost of Equity of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 10.95%.
The Cost of Debt of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 5.65%.

Range Selected
Cost of equity 9.30% - 12.60% 10.95%
Tax rate 20.40% - 36.00% 28.20%
Cost of debt 4.00% - 7.30% 5.65%
WACC 6.0% - 8.4% 7.2%
WACC

URBN.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.33 0.56
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.30% 12.60%
Tax rate 20.40% 36.00%
Debt/Equity ratio 1.14 1.14
Cost of debt 4.00% 7.30%
After-tax WACC 6.0% 8.4%
Selected WACC 7.2%

URBN.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 URBN.JK:

cost_of_equity (10.95%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.33) + 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.