ADMF.JK WACC - Weighted Average Cost of Capital

The WACC of Adira Dinamika Multi Finance Tbk PT (ADMF.JK) is 8.3%.

The Cost of Equity of Adira Dinamika Multi Finance Tbk PT (ADMF.JK) is 16.50%.

The Cost of Debt of Adira Dinamika Multi Finance Tbk PT (ADMF.JK) is 5.50%.

	Range	Selected
Cost of equity	14.20% - 18.80%	16.50%
Tax rate	21.30% - 22.50%	21.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.8% - 9.8%	8.3%

WACC

ADMF.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.97	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	18.80%

Tax rate	21.30%	22.50%
Debt/Equity ratio	2.06	2.06
Cost of debt	4.00%	7.00%

After-tax WACC	6.8%	9.8%


Selected WACC	8.3%

ADMF.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 ADMF.JK:

cost_of_equity (16.50%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.97) + 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.