The WACC of Victoria Investama Tbk PT (VICO.JK) is 11.3%.
Range | Selected | |
Cost of equity | 10.5% - 15.8% | 13.15% |
Tax rate | 22.8% - 23.6% | 23.2% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 9.2% - 13.3% | 11.3% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.5 | 0.92 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.5% | 15.8% |
Tax rate | 22.8% | 23.6% |
Debt/Equity ratio | 0.26 | 0.26 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 9.2% | 13.3% |
Selected WACC | 11.3% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VICO.JK | Victoria Investama Tbk PT | 0.26 | 1.14 | 0.96 |
7150.T | Shimane Bank Ltd | 5.18 | 0.7 | 0.14 |
8521.T | Nagano Bank Ltd | 9.44 | 0.37 | 0.05 |
BABP.JK | Bank MNC Internasional Tbk PT | 0.52 | 0.82 | 0.59 |
BGTG.JK | Bank Ganesha Tbk PT | 0.01 | 1.16 | 1.15 |
BSWD.JK | Bank Of India Indonesia Tbk PT | 0 | 0.25 | 0.25 |
DNAR.JK | Bank Oke Indonesia Tbk PT | 0.32 | 1.33 | 1.07 |
INPC.JK | Bank Artha Graha Internasional Tbk PT | 0.24 | 1.42 | 1.19 |
PNBS.JK | Bank Panin Dubai Syariah Tbk PT | 0.21 | 0.14 | 0.12 |
SDRA.JK | Bank Woori Saudara Indonesia 1906 Tbk PT | 2.55 | 0.4 | 0.13 |
Low | High | |
Unlevered beta | 0.21 | 0.73 |
Relevered beta | 0.25 | 0.88 |
Adjusted relevered beta | 0.5 | 0.92 |
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 VICO.JK:
cost_of_equity (13.15%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.5) + 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.