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PT Arkora Hydro TbkISX:ARKO 74 WACC % is 20.21% as of Jul. 26, 2026, which is 103% above its 10-year median of 9.98. GuruFocus rates ISX:ARKO with a GF Score™ of 74/100 and a GF Value™ of Rp1,754.67 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 482 Utilities - Independent Power Producers companies, PT Arkora Hydro Tbk ranks worse than 97.93% on this metric.
As of today (2026-07-26), PT Arkora Hydro Tbk's weighted average cost of capital is 20.21%%. PT Arkora Hydro Tbk's ROIC % is 0.28% (calculated using TTM income statement data).
PT Arkora Hydro Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
PT Arkora Hydro Tbk (ISX:ARKO) WACC % Explanation
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 Arkora Hydro Tbk's weighted average cost of capital is 20.21%%. PT Arkora Hydro Tbk's ROIC % is 0.28% (calculated using TTM income statement data).
PT Arkora Hydro Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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 Arkora Hydro Tbk WACC % Historical Data
* Premium members only.
The historical data trend for PT Arkora Hydro Tbk's WACC % can be seen below:
* 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.
For the Utilities - Renewable subindustry, PT Arkora Hydro Tbk's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* 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 Arkora Hydro Tbk WACC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, PT Arkora Hydro Tbk's WACC % distribution charts can be found below:
* The bar in red indicates where PT Arkora Hydro Tbk's WACC % falls into.
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 Arkora Hydro Tbk's market capitalization (E) is Rp16692421.500 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 Arkora Hydro Tbk's latest one-year quarterly average Book Value of Debt (D) is Rp961262.2004 Mil.
a) weight of equity = E / (E + D) = 16692421.500 / (16692421.500 + 961262.2004) = 0.9455
b) weight of debt = D / (E + D) = 961262.2004 / (16692421.500 + 961262.2004) = 0.0545
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 4.681%. 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 Arkora Hydro Tbk's beta is 2.7048.
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 = 4.681% + 2.7048 * 6% = 20.9098%
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 Arkora Hydro Tbk's interest expense (positive number) was Rp78282.438 Mil. Its total Book Value of Debt (D) is Rp961262.2004 Mil.
Cost of Debt = 78282.438 / 961262.2004 = 8.1437%.
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 = -6961.639 / 53110.041 = -13.11%, which is less than 0%. Therefore it's set to 0%.
PT Arkora Hydro Tbk's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9455
*
20.9098%
+
0.0545
*
8.1437%
*
(1 - 0%)
=
20.21%
* 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 Arkora Hydro Tbk (ISX:ARKO) has a WACC % of 20.21% as of Jul. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on PT Arkora Hydro Tbk and its competitors. This is 103% above median its historical median of 9.98. Over the past decade, PT Arkora Hydro Tbk's WACC % has ranged from 9.37 to 20.21. According to the industry distribution chart, PT Arkora Hydro Tbk ranks #472 out of 482 companies in the Utilities - Independent Power Producers industry, placing it in the top 97.9%.
Is PT Arkora Hydro Tbk's WACC % too high?
PT Arkora Hydro Tbk's current WACC % of 20.21% is 103% above median its 10-year median of 9.98. Over the past 10 years, this metric has ranged from a low of 9.37 to a high of 20.21. The Utilities - Independent Power Producers industry median WACC % is 8.08. PT Arkora Hydro Tbk's value of 20.21% is 150.1% above this industry median. Based on the distribution chart, PT Arkora Hydro Tbk ranks #472 out of 482 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, PT Arkora Hydro Tbk has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PT Arkora Hydro Tbk's WACC % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, PT Arkora Hydro Tbk ranks #472 out of 482 companies for WACC %. This places PT Arkora Hydro Tbk in the lower half of its industry. The industry median WACC % is 8.08. PT Arkora Hydro Tbk's value of 20.21% is 150.1% above this benchmark. Historically, PT Arkora Hydro Tbk's own WACC % has ranged from 9.37 to 20.21 over the past decade. While the company's 10-year median is 9.98 vs. the industry median of 8.08, PT Arkora Hydro Tbk has consistently been above 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 an Utilities - Independent Power Producers company?
The median WACC % among Utilities - Independent Power Producers companies is 8.08, based on 482 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 Arkora Hydro Tbk's current WACC % of 20.21% is 150.1% above 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 Arkora Hydro Tbk and its competitors. For the Utilities - Independent Power Producers industry, the median WACC % is 8.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Arkora Hydro Tbk's current WACC % is 20.21%, which is 103% above median its own 10-year median of 9.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Arkora Hydro Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Arkora Hydro Tbk (ISX:ARKO) is currently considered Significantly Overvalued. The stock's GF Value™ is Rp1,754.67, compared to a current price of Rp5,700.00 — trading 224.8% above its estimated fair value. The current WACC % is 20.21%, which is 103% above median its 10-year median of 9.98 and 150.1% above the Utilities - Independent Power Producers industry median of 8.08. PT Arkora Hydro Tbk's overall GF Score™ is 74/100 with 5 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 Arkora Hydro Tbk (ISX:ARKO), the current WACC % is 20.21% as of Jul. 26, 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 Arkora Hydro Tbk (ISX:ARKO) Overvalued in 2026?
Based on GuruFocus' analysis, PT Arkora Hydro Tbk stock appears to be overvalued.
The current stock price of Rp5,700.00 is trading 224.8% above its estimated GF Value™ of Rp1,754.67.
GuruFocus considers PT Arkora Hydro Tbk to be Significantly Overvalued.
Key valuation signals for ISX:ARKO:
WACC %: 20.21% (103% above median its 10-year median of 9.98)
GF Value™: Rp1,754.67 vs. price of Rp5,700.00 (224.8% above fair value)
Industry Position: 150.1% above the Utilities - Independent Power Producers median (#472 of 482)
No single metric tells the full story. See the ISX:ARKO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Arkora Hydro Tbk is dedicated to the development and operation of hydropower plants in Indonesia. The company owns and develops hydropower plant facilities that operate in a run-of-river fashion throughout Indonesia. The run-of-river hydropower plant is the type of power plant where little or no water storage is needed. The company's reportable segments are; the 7.4 MW mini hydro powerplant in Cikopo (West Java), the 10 MW mini hydro power plant in Tomasa (Sulawesi Tengah), the 10 MW minihydro electric power plant in Yaentu (Central Sulawesi), the 5.4 MW minihydro electric power plant in Kukusan (Lampung), and the 10 MW minihydro electric power plant in Tomoni (Sulawesi Selatan), and other construction services.
74GF Score
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