TARA.JK
Agung Semesta Sejahtera Tbk PT
Price:  
11.00 
IDR
Volume:  
8,341,600.00
Indonesia | Construction & Engineering
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TARA.JK WACC - Weighted Average Cost of Capital

The WACC of Agung Semesta Sejahtera Tbk PT (TARA.JK) is 8.8%.

The Cost of Equity of Agung Semesta Sejahtera Tbk PT (TARA.JK) is 12.05%.
The Cost of Debt of Agung Semesta Sejahtera Tbk PT (TARA.JK) is 7.20%.

Range Selected
Cost of equity 10.60% - 13.50% 12.05%
Tax rate 22.00% - 23.20% 22.60%
Cost of debt 7.20% - 7.20% 7.20%
WACC 8.1% - 9.5% 8.8%
WACC

TARA.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.5 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.60% 13.50%
Tax rate 22.00% 23.20%
Debt/Equity ratio 1 1
Cost of debt 7.20% 7.20%
After-tax WACC 8.1% 9.5%
Selected WACC 8.8%

TARA.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 TARA.JK:

cost_of_equity (12.05%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.5) + 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.