CMPP.JK WACC - Weighted Average Cost of Capital
The WACC of AirAsia Indonesia Tbk PT (CMPP.JK) is 12.1%.
| Range | Selected | |
| Cost of equity | 23.9% - 56.6% | 40.25% |
| Tax rate | 1.0% - 5.0% | 3% |
| Cost of debt | 4.0% - 15.1% | 9.55% |
| WACC | 5.9% - 18.4% | 12.1% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 2.19 | 5.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 23.9% | 56.6% |
| Tax rate | 1.0% | 5.0% |
| Debt/Equity ratio | 9.45 | 9.45 |
| Cost of debt | 4.0% | 15.1% |
| After-tax WACC | 5.9% | 18.4% |
| Selected WACC | 12.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CMPP.JK | AirAsia Indonesia Tbk PT | 9.45 | 0.53 | 0.05 |
| 180640.KS | Hanjin Kal | 0.08 | 0.92 | 0.85 |
| 298690.KS | Air Busan Co Ltd | 2.96 | 0.59 | 0.15 |
| 9206.T | Star Flyer Inc | 0.38 | 0.24 | 0.18 |
| AAV.BK | Asia Aviation PCL | 2.82 | 1.26 | 0.33 |
| AIRARABIA.DB | Air Arabia PJSC | 0.13 | 1.21 | 1.08 |
| BA.BK | Bangkok Airways PCL | 0.46 | 0.99 | 0.68 |
| HELI.JK | Jaya Trishindo Tbk PT | 0.35 | 1.36 | 1.01 |
| HVN.VN | Vietnam Airlines JSC | 0.27 | 1.31 | 1.04 |
| NOK.BK | Nok Airlines PCL | 23.35 | -1.45 | -0.06 |
| Low | High | |
| Unlevered beta | 0.27 | 0.75 |
| Relevered beta | 2.78 | 7.75 |
| Adjusted relevered beta | 2.19 | 5.52 |
CMPP.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 CMPP.JK:
cost_of_equity (40.25%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (2.19) + 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.