ARII.JK
Atlas Resources Tbk PT
Price:  
272.00 
IDR
Volume:  
101,800.00
Indonesia | Oil, Gas & Consumable Fuels
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ARII.JK WACC - Weighted Average Cost of Capital

The WACC of Atlas Resources Tbk PT (ARII.JK) is 9.2%.

The Cost of Equity of Atlas Resources Tbk PT (ARII.JK) is 17.65%.
The Cost of Debt of Atlas Resources Tbk PT (ARII.JK) is 5.00%.

Range Selected
Cost of equity 15.00% - 20.30% 17.65%
Tax rate 22.00% - 23.20% 22.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.2% - 10.2% 9.2%
WACC

ARII.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 1.07 1.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 20.30%
Tax rate 22.00% 23.20%
Debt/Equity ratio 1.59 1.59
Cost of debt 5.00% 5.00%
After-tax WACC 8.2% 10.2%
Selected WACC 9.2%

ARII.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 ARII.JK:

cost_of_equity (17.65%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.07) + 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.