AKRA.JK
AKR Corporindo Tbk PT
Price:  
1,295.00 
IDR
Volume:  
34,302,800.00
Indonesia | Oil, Gas & Consumable Fuels
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AKRA.JK WACC - Weighted Average Cost of Capital

The WACC of AKR Corporindo Tbk PT (AKRA.JK) is 11.1%.

The Cost of Equity of AKR Corporindo Tbk PT (AKRA.JK) is 12.40%.
The Cost of Debt of AKR Corporindo Tbk PT (AKRA.JK) is 5.50%.

Range Selected
Cost of equity 11.40% - 13.40% 12.40%
Tax rate 17.20% - 18.30% 17.75%
Cost of debt 4.00% - 7.00% 5.50%
WACC 10.0% - 12.1% 11.1%
WACC

AKRA.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.6 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 13.40%
Tax rate 17.20% 18.30%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 7.00%
After-tax WACC 10.0% 12.1%
Selected WACC 11.1%

AKRA.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 AKRA.JK:

cost_of_equity (12.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.6) + 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.