WIIM.JK
Wismilak Inti Makmur Tbk PT
Price:  
755.00 
IDR
Volume:  
794,700.00
Indonesia | Tobacco
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WIIM.JK WACC - Weighted Average Cost of Capital

The WACC of Wismilak Inti Makmur Tbk PT (WIIM.JK) is 12.4%.

The Cost of Equity of Wismilak Inti Makmur Tbk PT (WIIM.JK) is 14.60%.
The Cost of Debt of Wismilak Inti Makmur Tbk PT (WIIM.JK) is 5.50%.

Range Selected
Cost of equity 13.00% - 16.20% 14.60%
Tax rate 20.40% - 21.20% 20.80%
Cost of debt 4.00% - 7.00% 5.50%
WACC 10.9% - 13.9% 12.4%
WACC

WIIM.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.81 0.96
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 16.20%
Tax rate 20.40% 21.20%
Debt/Equity ratio 0.27 0.27
Cost of debt 4.00% 7.00%
After-tax WACC 10.9% 13.9%
Selected WACC 12.4%

WIIM.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 WIIM.JK:

cost_of_equity (14.60%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.81) + 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.