The WACC of Akbar Indo Makmur Stimec Tbk PT (AIMS.JK) is 7.1%.
Range | Selected | |
Cost of equity | 9.2% - 10.6% | 9.9% |
Tax rate | 8.7% - 16.9% | 12.8% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 6.9% - 7.4% | 7.1% |
Category | Low | High |
Long-term bond rate | 6.6% | 7.1% |
Equity market risk premium | 7.9% | 8.9% |
Adjusted beta | 0.33 | 0.34 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.2% | 10.6% |
Tax rate | 8.7% | 16.9% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 6.9% | 7.4% |
Selected WACC | 7.1% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
AIMS.JK | Akbar Indo Makmur Stimec Tbk PT | 0.9 | 1.46 | 0.83 |
513687.BO | Spectra Industries Ltd | 14.86 | 0.41 | 0.03 |
539526.BO | Suncare Traders Ltd | 0.24 | -0.05 | -0.04 |
APII.JK | Arita Prima Indonesia Tbk PT | 0.8 | 0 | 0 |
HKMU.JK | HK Metals Utama Tbk PT | 1.63 | 0 | 0 |
INTA.JK | Intraco Penta Tbk PT | 90.63 | 1.07 | 0.01 |
KOBX.JK | Kobexindo Tractors Tbk PT | 87189.41 | 0.34 | 0 |
KOIN.JK | Kokoh Inti Arebama Tbk PT | 0.2 | -0.03 | -0.02 |
MSI.AX | Multistack International Ltd | 6 | 0.16 | 0.03 |
SGER.JK | Sumber Global Energy Tbk PT | 0.24 | 0.73 | 0.6 |
TIRA.JK | Tira Austenite Tbk PT | 0.1 | -0.59 | -0.55 |
Low | High | |
Unlevered beta | 0 | 0.01 |
Relevered beta | 0 | 0.01 |
Adjusted relevered beta | 0.33 | 0.34 |
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 AIMS.JK:
cost_of_equity (9.90%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.33) + 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.