URBN.JK
Urban Jakarta Propertindo Tbk PT
Price:  
125 
IDR
Volume:  
19,700
Indonesia | Real Estate Management & Development

URBN.JK WACC - Weighted Average Cost of Capital

The WACC of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 7.1%.

The Cost of Equity of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 10.9%.
The Cost of Debt of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 5.65%.

RangeSelected
Cost of equity9.2% - 12.6%10.9%
Tax rate20.4% - 36.0%28.2%
Cost of debt4.0% - 7.3%5.65%
WACC5.9% - 8.2%7.1%
WACC

URBN.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.320.56
Additional risk adjustments0.0%0.5%
Cost of equity9.2%12.6%
Tax rate20.4%36.0%
Debt/Equity ratio
1.231.23
Cost of debt4.0%7.3%
After-tax WACC5.9%8.2%
Selected WACC7.1%

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 (10.90%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.32) + 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.