AMRT.JK
Sumber Alfaria Trijaya Tbk PT
Price:  
2,120.00 
IDR
Volume:  
54,028,500.00
Indonesia | Food & Staples Retailing
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AMRT.JK WACC - Weighted Average Cost of Capital

The WACC of Sumber Alfaria Trijaya Tbk PT (AMRT.JK) is 10.9%.

The Cost of Equity of Sumber Alfaria Trijaya Tbk PT (AMRT.JK) is 11.05%.
The Cost of Debt of Sumber Alfaria Trijaya Tbk PT (AMRT.JK) is 5.00%.

Range Selected
Cost of equity 9.90% - 12.20% 11.05%
Tax rate 18.60% - 19.00% 18.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.8% - 12.0% 10.9%
WACC

AMRT.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.42 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 12.20%
Tax rate 18.60% 19.00%
Debt/Equity ratio 0.02 0.02
Cost of debt 5.00% 5.00%
After-tax WACC 9.8% 12.0%
Selected WACC 10.9%

AMRT.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 AMRT.JK:

cost_of_equity (11.05%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.42) + 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.