As of today (2026-06-30), PT Sinar Mas Agro Resources & Technology Tbk's weighted average cost of capital is 6.9%%. PT Sinar Mas Agro Resources & Technology Tbk's ROIC % is 8.92% (calculated using TTM income statement data).
PT Sinar Mas Agro Resources & Technology Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, PT Sinar Mas Agro Resources & Technology Tbk's weighted average cost of capital is 6.9%%. PT Sinar Mas Agro Resources & Technology Tbk's ROIC % is 8.92% (calculated using TTM income statement data).
PT Sinar Mas Agro Resources & Technology Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
PT Sinar Mas Agro Resources & Technology Tbk WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PT Sinar Mas Agro Resources & Technology Tbk WACC % vs Consumer Packaged Goods Industry
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, PT Sinar Mas Agro Resources & Technology Tbk's market capitalization (E) is €665.227 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, PT Sinar Mas Agro Resources & Technology Tbk's latest one-year quarterly average Book Value of Debt (D) is €901.6788 Mil.
a) weight of equity = E / (E + D) = 665.227 / (665.227 + 901.6788) = 0.4245
b) weight of debt = D / (E + D) = 901.6788 / (665.227 + 901.6788) = 0.5755
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.463%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. PT Sinar Mas Agro Resources & Technology Tbk's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.463% + 1 * 6% = 10.463%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, PT Sinar Mas Agro Resources & Technology Tbk's interest expense (positive number) was €48.88 Mil. Its total Book Value of Debt (D) is €901.6788 Mil.
Cost of Debt = 48.88 / 901.6788 = 5.421%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 45.248 / 214.725 = 21.07%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) has a WACC % of 6.9% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on PT Sinar Mas Agro Resources & Technology Tbk and its competitors. This is 14% above median its historical median of 6.03. According to the industry distribution chart, PT Sinar Mas Agro Resources & Technology Tbk ranks #879 out of 2034 companies in the Consumer Packaged Goods industry, placing it in the top 43.2%.
Is PT Sinar Mas Agro Resources & Technology Tbk's WACC % too high?
PT Sinar Mas Agro Resources & Technology Tbk's current WACC % of 6.9% is 14% above median its 10-year median of 6.03. The Consumer Packaged Goods industry median WACC % is 7.69. PT Sinar Mas Agro Resources & Technology Tbk's value of 6.9% is 10.3% below this industry median. Based on the distribution chart, PT Sinar Mas Agro Resources & Technology Tbk ranks #879 out of 2034 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, PT Sinar Mas Agro Resources & Technology Tbk has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does PT Sinar Mas Agro Resources & Technology Tbk's WACC % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, PT Sinar Mas Agro Resources & Technology Tbk ranks #879 out of 2034 companies for WACC %. This puts PT Sinar Mas Agro Resources & Technology Tbk in the upper half of its industry. The industry median WACC % is 7.69. PT Sinar Mas Agro Resources & Technology Tbk's value of 6.9% is 10.3% below this benchmark. While the company's 10-year median is 6.03 vs. the industry median of 7.69, PT Sinar Mas Agro Resources & Technology Tbk has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.69, based on 2,034 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PT Sinar Mas Agro Resources & Technology Tbk's current WACC % of 6.9% is 10.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on PT Sinar Mas Agro Resources & Technology Tbk and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Sinar Mas Agro Resources & Technology Tbk's current WACC % is 6.9%, which is 14% above median its own 10-year median of 6.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Sinar Mas Agro Resources & Technology Tbk stock overvalued right now?
PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) has a current WACC % of 6.9%. The stock's GF Value™ is €0.20, compared to a current price of €0.19 — trading 4.2% below its estimated fair value. The current WACC % is 6.9%, which is 14% above median its 10-year median of 6.03 and 10.3% below the Consumer Packaged Goods industry median of 7.69. PT Sinar Mas Agro Resources & Technology Tbk's overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For PT Sinar Mas Agro Resources & Technology Tbk (FRA:078), the current WACC % is 6.9% as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) Overvalued in 2026?
Based on GuruFocus' analysis, PT Sinar Mas Agro Resources & Technology Tbk stock appears to be undervalued.
The current stock price of €0.19 is trading 4.2% below its estimated GF Value™ of €0.20.
Key valuation signals for FRA:078:
WACC %: 6.9% (14% above median its 10-year median of 6.03)
GF Value™: €0.20 vs. price of €0.19 (4.2% below fair value)
Industry Position: 10.3% below the Consumer Packaged Goods median (#879 of 2034)
No single metric tells the full story. See the FRA:078 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Sinar Mas Agro Resources & Technology Tbk Business Description
PT Sinar Mas Agro Resources & Technology Tbk is involved in the business of cultivating and harvesting oil palm trees, extracting fresh fruit bunches into crude palm oil and palm kernel, processing it into value-added products such as cooking oil, margarine, shortening, oleochemicals, and biodiesel. The firm's products include cooking oil, fat, margarine, crude palm oil, palm kernel, cocoa butter substitute, etc. Its scope of activities comprises plantation development, agriculture, trading, refining of plantation products, management services, and research related to the business.
84GF Score
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