The WACC of Visi Media Asia Tbk PT (VIVA.JK) is 6.0%.
Range | Selected | |
Cost of equity | 13.2% - 20.9% | 17.05% |
Tax rate | 2.6% - 4.4% | 3.5% |
Cost of debt | 4.0% - 7.2% | 5.6% |
WACC | 4.4% - 7.7% | 6.0% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.83 | 1.5 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.2% | 20.9% |
Tax rate | 2.6% | 4.4% |
Debt/Equity ratio | 17.35 | 17.35 |
Cost of debt | 4.0% | 7.2% |
After-tax WACC | 4.4% | 7.7% |
Selected WACC | 6.0% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
VIVA.JK | Visi Media Asia Tbk PT | 17.35 | -0.14 | -0.01 |
039340.KQ | Korea Business News Co Ltd | 0.11 | 0.11 | 0.1 |
BHIT.JK | MNC Investama Tbk PT | 11.3 | 1.13 | 0.1 |
BMTR.JK | Global Mediacom Tbk PT | 2.73 | 1.47 | 0.41 |
MARI.JK | Mahaka Radio Integra Tbk PT | 3.01 | 0.26 | 0.07 |
MDIA.JK | Intermedia Capital Tbk PT | 1.79 | 0.01 | 0 |
MNCN.JK | Media Nusantara Citra Tbk PT | 0.32 | 1.03 | 0.79 |
RBCM.ME | RBK PAO | 1.86 | -0.02 | -0.01 |
SCMA.JK | Surya Citra Media Tbk PT | 0 | 0.83 | 0.83 |
SEG.AX | Sports Entertainment Group Ltd | 0.52 | -0.38 | -0.25 |
Low | High | |
Unlevered beta | 0.04 | 0.1 |
Relevered beta | 0.75 | 1.75 |
Adjusted relevered beta | 0.83 | 1.5 |
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.