MAIN.JK WACC - Weighted Average Cost of Capital
The WACC of Malindo Feedmill Tbk PT (MAIN.JK) is 10.0%.
| Range | Selected | |
| Cost of equity | 12.8% - 20.0% | 16.4% |
| Tax rate | 22.5% - 31.4% | 26.95% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.8% - 12.2% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 6.6% | 7.1% |
| Equity market risk premium | 7.9% | 8.9% |
| Adjusted beta | 0.78 | 1.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.8% | 20.0% |
| Tax rate | 22.5% | 31.4% |
| Debt/Equity ratio | 1.06 | 1.06 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.8% | 12.2% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAIN.JK | Malindo Feedmill Tbk PT | 1.06 | 1.47 | 0.81 |
| 002852.SZ | Daodaoquan Grain and Oil Co Ltd | 0.32 | 1.28 | 1.02 |
| 6010.SR | National Agriculture Development Company SJSC | 0.04 | 1.2 | 1.17 |
| ANDI.JK | Andira Agro Tbk PT | 1.12 | -0.23 | -0.12 |
| DSNG.JK | Dharma Satya Nusantara Tbk PT | 0.69 | 0.74 | 0.49 |
| GAEL.NS | Gujarat Ambuja Exports Ltd | 0.04 | 1.28 | 1.24 |
| PSDN.JK | Prasidha Aneka Niaga Tbk PT | 4.18 | 0.71 | 0.17 |
| RIC.AX | Ridley Corporation Ltd | 0.09 | 1.06 | 0.99 |
| SGRO.JK | Sampoerna Agro Tbk PT | 0.72 | 0.18 | 0.11 |
| TBLA.JK | Tunas Baru Lampung Tbk PT | 3.39 | 0.74 | 0.2 |
| Low | High | |
| Unlevered beta | 0.37 | 0.88 |
| Relevered beta | 0.67 | 1.6 |
| Adjusted relevered beta | 0.78 | 1.4 |
MAIN.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 MAIN.JK:
cost_of_equity (16.40%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.78) + 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.