ACES.JK
Ace Hardware Indonesia Tbk PT
Price:  
496.00 
IDR
Volume:  
64,554,900.00
Indonesia | Specialty Retail
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ACES.JK WACC - Weighted Average Cost of Capital

The WACC of Ace Hardware Indonesia Tbk PT (ACES.JK) is 12.5%.

The Cost of Equity of Ace Hardware Indonesia Tbk PT (ACES.JK) is 13.35%.
The Cost of Debt of Ace Hardware Indonesia Tbk PT (ACES.JK) is 5.00%.

Range Selected
Cost of equity 11.30% - 15.40% 13.35%
Tax rate 18.20% - 18.90% 18.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.7% - 14.3% 12.5%
WACC

ACES.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.6 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.30% 15.40%
Tax rate 18.20% 18.90%
Debt/Equity ratio 0.1 0.1
Cost of debt 5.00% 5.00%
After-tax WACC 10.7% 14.3%
Selected WACC 12.5%

ACES.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 ACES.JK:

cost_of_equity (13.35%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.6) + 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.