URBN.JK WACC - Weighted Average Cost of Capital
The WACC of Urban Jakarta Propertindo Tbk PT (URBN.JK) is 7.1%.
| Range | Selected | |
| Cost of equity | 9.2% - 12.6% | 10.9% |
| Tax rate | 20.4% - 36.0% | 28.2% |
| Cost of debt | 4.0% - 7.3% | 5.65% |
| WACC | 5.9% - 8.2% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.32 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 12.6% |
| Tax rate | 20.4% | 36.0% |
| Debt/Equity ratio | 1.23 | 1.23 |
| Cost of debt | 4.0% | 7.3% |
| After-tax WACC | 5.9% | 8.2% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| URBN.JK | Urban Jakarta Propertindo Tbk PT | 1.23 | 0.4 | 0.2 |
| AMAN.JK | Makmur Berkah Amanda PT Tbk | 0.64 | 0.68 | 0.45 |
| CITY.JK | Natura City Developments Tbk PT | 0.16 | 1.44 | 1.29 |
| DFAM.JK | Dafam Property Indonesia Tbk PT | 1.45 | 0.12 | 0.06 |
| FMII.JK | Fortune Mate Indonesia Tbk PT | 0.03 | -0.2 | -0.2 |
| GAMA.JK | Aksara Global Development Tbk PT | 0.7 | 0.25 | 0.16 |
| GWSA.JK | Greenwood Sejahtera Tbk PT | 0.36 | 0.52 | 0.41 |
| MINA.JK | Sanurhasta Mitra Tbk PT | 0 | -0.99 | -0.99 |
| RBMS.JK | Ristia Bintang Mahkotasejati Tbk PT | 2.3 | -0.28 | -0.1 |
| SMDM.JK | Suryamas Dutamakmur Tbk PT | 0.02 | -0.48 | -0.47 |
| Low | High | |
| Unlevered beta | -0.01 | 0.18 |
| Relevered beta | -0.01 | 0.34 |
| Adjusted relevered beta | 0.32 | 0.56 |
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.