AGAR.JK
PT Asia Sejahtera Mina Tbk
Price:  
228 
IDR
Volume:  
35,200
Indonesia | Food Products

AGAR.JK WACC - Weighted Average Cost of Capital

The WACC of PT Asia Sejahtera Mina Tbk (AGAR.JK) is 10.5%.

The Cost of Equity of PT Asia Sejahtera Mina Tbk (AGAR.JK) is 12.95%.
The Cost of Debt of PT Asia Sejahtera Mina Tbk (AGAR.JK) is 5%.

RangeSelected
Cost of equity11.4% - 14.5%12.95%
Tax rate15.3% - 22.7%19%
Cost of debt5.0% - 5.0%5%
WACC9.5% - 11.6%10.5%
WACC

AGAR.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.610.77
Additional risk adjustments0.0%0.5%
Cost of equity11.4%14.5%
Tax rate15.3%22.7%
Debt/Equity ratio
0.370.37
Cost of debt5.0%5.0%
After-tax WACC9.5%11.6%
Selected WACC10.5%

AGAR.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 AGAR.JK:

cost_of_equity (12.95%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.61) + 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.