WSBP.JK WACC - Weighted Average Cost of Capital
The WACC of Waskita Beton Precast Tbk PT (WSBP.JK) is 7.2%.
| Range | Selected | |
| Cost of equity | 12.2% - 22.6% | 17.4% |
| Tax rate | 22.0% - 23.2% | 22.6% |
| Cost of debt | 4.0% - 8.8% | 6.4% |
| WACC | 4.7% - 9.6% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.7 | 1.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.2% | 22.6% |
| Tax rate | 22.0% | 23.2% |
| Debt/Equity ratio | 4.57 | 4.57 |
| Cost of debt | 4.0% | 8.8% |
| After-tax WACC | 4.7% | 9.6% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WSBP.JK | Waskita Beton Precast Tbk PT | 4.57 | 1.53 | 0.34 |
| 004980.KS | Sungshin Cement Co Ltd | 2.15 | 0.24 | 0.09 |
| 038500.KQ | Sampyo Cement Co Ltd | 1.58 | 0.32 | 0.14 |
| 1847.HK | YCIH Green High Performance Concrete Co Ltd | 13.48 | 0.02 | 0 |
| CTTH.JK | Citatah Tbk PT | 6.26 | 0.38 | 0.06 |
| INTP.JK | Indocement Tunggal Prakarsa Tbk PT | 0.13 | 1.23 | 1.12 |
| ORIENTCEM.NS | Orient Cement Ltd | 0.01 | -0.29 | -0.29 |
| SMBR.JK | Semen Baturaja (Persero) Tbk PT | 0.25 | 1.6 | 1.33 |
| SMCB.JK | Solusi Bangun Indonesia Tbk PT | 0.31 | 0.75 | 0.61 |
| SMGR.JK | Semen Indonesia (Persero) Tbk PT | 0.6 | 1.69 | 1.15 |
| Low | High | |
| Unlevered beta | 0.12 | 0.44 |
| Relevered beta | 0.55 | 2.03 |
| Adjusted relevered beta | 0.7 | 1.69 |
WSBP.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 WSBP.JK:
cost_of_equity (17.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.7) + 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.