VICO.JK
Victoria Investama Tbk PT
Price:  
144 
IDR
Volume:  
50,800
Indonesia | Banks

VICO.JK WACC - Weighted Average Cost of Capital

The WACC of Victoria Investama Tbk PT (VICO.JK) is 11.3%.

The Cost of Equity of Victoria Investama Tbk PT (VICO.JK) is 13.15%.
The Cost of Debt of Victoria Investama Tbk PT (VICO.JK) is 5%.

RangeSelected
Cost of equity10.5% - 15.8%13.15%
Tax rate22.8% - 23.6%23.2%
Cost of debt5.0% - 5.0%5%
WACC9.2% - 13.3%11.3%
WACC

VICO.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.50.92
Additional risk adjustments0.0%0.5%
Cost of equity10.5%15.8%
Tax rate22.8%23.6%
Debt/Equity ratio
0.260.26
Cost of debt5.0%5.0%
After-tax WACC9.2%13.3%
Selected WACC11.3%

VICO.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 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.