AIMS.JK
Akbar Indo Makmur Stimec Tbk PT
Price:  
298 
IDR
Volume:  
17,700
Indonesia | Trading Companies & Distributors

AIMS.JK WACC - Weighted Average Cost of Capital

The WACC of Akbar Indo Makmur Stimec Tbk PT (AIMS.JK) is 7.1%.

The Cost of Equity of Akbar Indo Makmur Stimec Tbk PT (AIMS.JK) is 9.9%.
The Cost of Debt of Akbar Indo Makmur Stimec Tbk PT (AIMS.JK) is 5%.

RangeSelected
Cost of equity9.2% - 10.6%9.9%
Tax rate8.7% - 16.9%12.8%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 7.4%7.1%
WACC

AIMS.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.330.34
Additional risk adjustments0.0%0.5%
Cost of equity9.2%10.6%
Tax rate8.7%16.9%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.9%7.4%
Selected WACC7.1%

AIMS.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 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.