AALI.JK
Astra Agro Lestari Tbk PT
Price:  
6,350 
IDR
Volume:  
3,101,100
Indonesia | Food Products

AALI.JK WACC - Weighted Average Cost of Capital

The WACC of Astra Agro Lestari Tbk PT (AALI.JK) is 10.7%.

The Cost of Equity of Astra Agro Lestari Tbk PT (AALI.JK) is 12.6%.
The Cost of Debt of Astra Agro Lestari Tbk PT (AALI.JK) is 5%.

RangeSelected
Cost of equity10.8% - 14.4%12.6%
Tax rate28.4% - 29.6%29%
Cost of debt5.0% - 5.0%5%
WACC9.3% - 12.1%10.7%
WACC

AALI.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.530.76
Additional risk adjustments0.0%0.5%
Cost of equity10.8%14.4%
Tax rate28.4%29.6%
Debt/Equity ratio
0.260.26
Cost of debt5.0%5.0%
After-tax WACC9.3%12.1%
Selected WACC10.7%

AALI.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 AALI.JK:

cost_of_equity (12.60%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.53) + 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.