EXCL.JK
XL Axiata Tbk PT
Price:  
2,180.00 
IDR
Volume:  
10,342,300.00
Indonesia | Wireless Telecommunication Services
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EXCL.JK WACC - Weighted Average Cost of Capital

The WACC of XL Axiata Tbk PT (EXCL.JK) is 7.9%.

The Cost of Equity of XL Axiata Tbk PT (EXCL.JK) is 12.70%.
The Cost of Debt of XL Axiata Tbk PT (EXCL.JK) is 5.00%.

Range Selected
Cost of equity 11.40% - 14.00% 12.70%
Tax rate 24.30% - 24.70% 24.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.3% - 8.6% 7.9%
WACC

EXCL.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.6 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 14.00%
Tax rate 24.30% 24.70%
Debt/Equity ratio 1.14 1.14
Cost of debt 5.00% 5.00%
After-tax WACC 7.3% 8.6%
Selected WACC 7.9%

EXCL.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 EXCL.JK:

cost_of_equity (12.70%) = 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.