ARNA.JK
Arwana Citramulia Tbk PT
Price:  
590 
IDR
Volume:  
2,258,300
Indonesia | Building Products

ARNA.JK WACC - Weighted Average Cost of Capital

The WACC of Arwana Citramulia Tbk PT (ARNA.JK) is 12.7%.

The Cost of Equity of Arwana Citramulia Tbk PT (ARNA.JK) is 12.9%.
The Cost of Debt of Arwana Citramulia Tbk PT (ARNA.JK) is 5.5%.

RangeSelected
Cost of equity11.3% - 14.5%12.9%
Tax rate22.0% - 22.0%22%
Cost of debt4.0% - 7.0%5.5%
WACC11.1% - 14.3%12.7%
WACC

ARNA.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.60.78
Additional risk adjustments0.0%0.5%
Cost of equity11.3%14.5%
Tax rate22.0%22.0%
Debt/Equity ratio
0.020.02
Cost of debt4.0%7.0%
After-tax WACC11.1%14.3%
Selected WACC12.7%

ARNA.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 ARNA.JK:

cost_of_equity (12.90%) = 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.