The WACC of PT Asia Sejahtera Mina Tbk (AGAR.JK) is 10.5%.
Range | Selected | |
Cost of equity | 11.4% - 14.5% | 12.95% |
Tax rate | 15.3% - 22.7% | 19% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 9.5% - 11.6% | 10.5% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.61 | 0.77 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.4% | 14.5% |
Tax rate | 15.3% | 22.7% |
Debt/Equity ratio | 0.37 | 0.37 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 9.5% | 11.6% |
Selected WACC | 10.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AGAR.JK | PT Asia Sejahtera Mina Tbk | 0.37 | 0.2 | 0.15 |
519397.BO | Sharat Industries Ltd | 0.29 | 0.87 | 0.71 |
539963.BO | Zeal Aqua Ltd | 1.17 | 0.96 | 0.5 |
BTEK.JK | Bumi Teknokultura Unggul Tbk PT | 12.8 | 1.44 | 0.13 |
DPUM.JK | Dua Putra Utama Makmur Tbk PT | 2.89 | 0.49 | 0.15 |
DSFI.JK | Dharma Samudera Fishing Industries Tbk PT | 0.93 | 0.9 | 0.52 |
GZCO.JK | Gozco Plantations Tbk PT | 0.77 | 0.7 | 0.44 |
PGUN.JK | Pradiksi Gunatama Tbk PT | 0.16 | 0.69 | 0.62 |
SIPD.JK | Sreeya Sewu Indonesia Tbk PT | 1.09 | -0.02 | -0.01 |
SMCAP.KL | Sinmah Capital Bhd | 0.15 | 0.88 | 0.79 |
Low | High | |
Unlevered beta | 0.33 | 0.51 |
Relevered beta | 0.42 | 0.66 |
Adjusted relevered beta | 0.61 | 0.77 |
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.