ZONE.JK WACC - Weighted Average Cost of Capital

The WACC of Mega Perintis Tbk PT (ZONE.JK) is 11.0%.

The Cost of Equity of Mega Perintis Tbk PT (ZONE.JK) is 13.40%.

The Cost of Debt of Mega Perintis Tbk PT (ZONE.JK) is 5.50%.

	Range	Selected
Cost of equity	11.20% - 15.60%	13.40%
Tax rate	20.40% - 23.40%	21.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.1% - 12.9%	11.0%

WACC

ZONE.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.59	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.60%

Tax rate	20.40%	23.40%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.00%	7.00%

After-tax WACC	9.1%	12.9%


Selected WACC	11.0%

ZONE.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 ZONE.JK:

cost_of_equity (13.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.59) + 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.