FAST.JK
Fast Food Indonesia Tbk PT
Price:  
182 
IDR
Volume:  
34,312,300
Indonesia | Hotels, Restaurants & Leisure

FAST.JK WACC - Weighted Average Cost of Capital

The WACC of Fast Food Indonesia Tbk PT (FAST.JK) is 7.2%.

The Cost of Equity of Fast Food Indonesia Tbk PT (FAST.JK) is 11.65%.
The Cost of Debt of Fast Food Indonesia Tbk PT (FAST.JK) is 5.6%.

RangeSelected
Cost of equity10.8% - 12.5%11.65%
Tax rate17.7% - 18.5%18.1%
Cost of debt4.0% - 7.2%5.6%
WACC6.0% - 8.3%7.2%
WACC

FAST.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.530.55
Additional risk adjustments0.0%0.5%
Cost of equity10.8%12.5%
Tax rate17.7%18.5%
Debt/Equity ratio
1.731.73
Cost of debt4.0%7.2%
After-tax WACC6.0%8.3%
Selected WACC7.2%

FAST.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 FAST.JK:

cost_of_equity (11.65%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.53) + 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.