CMPP.JK
AirAsia Indonesia Tbk PT
Price:  
78 
IDR
Volume:  
67,600
Indonesia | Airlines

CMPP.JK WACC - Weighted Average Cost of Capital

The WACC of AirAsia Indonesia Tbk PT (CMPP.JK) is 11.9%.

The Cost of Equity of AirAsia Indonesia Tbk PT (CMPP.JK) is 23.4%.
The Cost of Debt of AirAsia Indonesia Tbk PT (CMPP.JK) is 11.2%.

RangeSelected
Cost of equity18.6% - 28.2%23.4%
Tax rate1.0% - 5.0%3%
Cost of debt4.0% - 18.4%11.2%
WACC5.3% - 18.5%11.9%
WACC

CMPP.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta1.522.32
Additional risk adjustments0.0%0.5%
Cost of equity18.6%28.2%
Tax rate1.0%5.0%
Debt/Equity ratio
9.699.69
Cost of debt4.0%18.4%
After-tax WACC5.3%18.5%
Selected WACC11.9%

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 (23.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (1.52) + 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.