ANDI.JK WACC - Weighted Average Cost of Capital
The WACC of Andira Agro Tbk PT (ANDI.JK) is 9.3%.
| Range | Selected | |
| Cost of equity | 11.4% - 16.1% | 13.75% |
| Tax rate | 13.4% - 20.7% | 17.05% |
| Cost of debt | 4.0% - 7.7% | 5.85% |
| WACC | 7.5% - 11.1% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.61 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.4% | 16.1% |
| Tax rate | 13.4% | 20.7% |
| Debt/Equity ratio | 0.99 | 0.99 |
| Cost of debt | 4.0% | 7.7% |
| After-tax WACC | 7.5% | 11.1% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ANDI.JK | Andira Agro Tbk PT | 0.99 | 0.29 | 0.16 |
| AALI.JK | Astra Agro Lestari Tbk PT | 0.26 | 0.83 | 0.68 |
| ANJT.JK | Austindo Nusantara Jaya Tbk PT | 0.4 | -0.18 | -0.13 |
| CPIN.JK | Charoen Pokphand Indonesia Tbk PT | 0.1 | 0.79 | 0.72 |
| DSNG.JK | Dharma Satya Nusantara Tbk PT | 0.54 | 0.9 | 0.62 |
| MAGP.JK | Multi Agro Gemilang Plantation Tbk PT | 1.58 | 0.9 | 0.39 |
| MAIN.JK | Malindo Feedmill Tbk PT | 1.18 | 1.47 | 0.74 |
| PSDN.JK | Prasidha Aneka Niaga Tbk PT | 4.41 | 0.69 | 0.15 |
| SGRO.JK | Sampoerna Agro Tbk PT | 0.64 | 0.28 | 0.18 |
| TBLA.JK | Tunas Baru Lampung Tbk PT | 2.86 | 0.89 | 0.26 |
| Low | High | |
| Unlevered beta | 0.23 | 0.48 |
| Relevered beta | 0.42 | 0.93 |
| Adjusted relevered beta | 0.61 | 0.95 |
ANDI.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 ANDI.JK:
cost_of_equity (13.75%) = 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.