AALI.JK WACC - Weighted Average Cost of Capital
The WACC of Astra Agro Lestari Tbk PT (AALI.JK) is 10.7%.
| Range | Selected | |
| Cost of equity | 10.8% - 14.4% | 12.6% |
| Tax rate | 28.4% - 29.6% | 29% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 9.3% - 12.1% | 10.7% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.53 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.8% | 14.4% |
| Tax rate | 28.4% | 29.6% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 9.3% | 12.1% |
| Selected WACC | 10.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AALI.JK | Astra Agro Lestari Tbk PT | 0.26 | 0.83 | 0.7 |
| ANDI.JK | Andira Agro Tbk PT | 0.99 | 0.29 | 0.17 |
| ANJT.JK | Austindo Nusantara Jaya Tbk PT | 0.4 | -0.18 | -0.14 |
| CPIN.JK | Charoen Pokphand Indonesia Tbk PT | 0.1 | 0.79 | 0.73 |
| DSNG.JK | Dharma Satya Nusantara Tbk PT | 0.54 | 0.9 | 0.65 |
| MAGP.JK | Multi Agro Gemilang Plantation Tbk PT | 1.58 | 0.9 | 0.43 |
| MAIN.JK | Malindo Feedmill Tbk PT | 1.18 | 1.47 | 0.8 |
| PSDN.JK | Prasidha Aneka Niaga Tbk PT | 4.41 | 0.69 | 0.17 |
| SGRO.JK | Sampoerna Agro Tbk PT | 0.64 | 0.28 | 0.19 |
| TBLA.JK | Tunas Baru Lampung Tbk PT | 2.86 | 0.89 | 0.29 |
| Low | High | |
| Unlevered beta | 0.25 | 0.52 |
| Relevered beta | 0.3 | 0.64 |
| Adjusted relevered beta | 0.53 | 0.76 |
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.