VIVA.JK
Visi Media Asia Tbk PT
Price:  
12 
IDR
Volume:  
1,240,800
Indonesia | Media

VIVA.JK WACC - Weighted Average Cost of Capital

The WACC of Visi Media Asia Tbk PT (VIVA.JK) is 6.0%.

The Cost of Equity of Visi Media Asia Tbk PT (VIVA.JK) is 17.05%.
The Cost of Debt of Visi Media Asia Tbk PT (VIVA.JK) is 5.6%.

RangeSelected
Cost of equity13.2% - 20.9%17.05%
Tax rate2.6% - 4.4%3.5%
Cost of debt4.0% - 7.2%5.6%
WACC4.4% - 7.7%6.0%
WACC

VIVA.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.831.5
Additional risk adjustments0.0%0.5%
Cost of equity13.2%20.9%
Tax rate2.6%4.4%
Debt/Equity ratio
17.3517.35
Cost of debt4.0%7.2%
After-tax WACC4.4%7.7%
Selected WACC6.0%

VIVA.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 VIVA.JK:

cost_of_equity (17.05%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.83) + 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.