WIKA.JK WACC - Weighted Average Cost of Capital
The WACC of Wijaya Karya (Persero) Tbk PT (WIKA.JK) is 10.3%.
| Range | Selected | |
| Cost of equity | 31.2% - 37.4% | 34.3% |
| Tax rate | 3.2% - 5.9% | 4.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.8% - 10.8% | 10.3% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 3.12 | 3.35 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 31.2% | 37.4% |
| Tax rate | 3.2% | 5.9% |
| Debt/Equity ratio | 4.35 | 4.35 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.8% | 10.8% |
| Selected WACC | 10.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WIKA.JK | Wijaya Karya (Persero) Tbk PT | 4.35 | 2.74 | 0.53 |
| 000065.SZ | NORINCO International Cooperation Ltd | 0.64 | 1.42 | 0.88 |
| 1950.T | Nippon Densetsu Kogyo Co Ltd | 0.03 | 0.94 | 0.92 |
| 1979.T | Taikisha Ltd | 0.03 | 0.83 | 0.81 |
| ACST.JK | Acset Indonusa Tbk PT | 0.45 | 1.45 | 1.02 |
| JKON.JK | Jaya Konstruksi Manggala Pratama Tbk PT | 0.13 | 0.89 | 0.79 |
| NRCA.JK | Nusa Raya Cipta Tbk PT | 0.21 | 0.75 | 0.62 |
| PBSA.JK | Paramita Bangun Sarana Tbk PT | 0.01 | 0.9 | 0.89 |
| SSIA.JK | Surya Semesta Internusa Tbk PT | 0.22 | 0.41 | 0.34 |
| WEGE.JK | Wijaya Karya Bangunan Gedung Tbk PT | 0.74 | 1.48 | 0.87 |
| WSKT.JK | Waskita Karya (Persero) Tbk PT | 9.63 | 1.34 | 0.13 |
| Low | High | |
| Unlevered beta | 0.79 | 0.87 |
| Relevered beta | 4.16 | 4.51 |
| Adjusted relevered beta | 3.12 | 3.35 |
WIKA.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 WIKA.JK:
cost_of_equity (34.30%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (3.12) + 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.