FITT.JK WACC - Weighted Average Cost of Capital

The WACC of Hotel Fitra International Tbk PT (FITT.JK) is 10.1%.

The Cost of Equity of Hotel Fitra International Tbk PT (FITT.JK) is 10.30%.

The Cost of Debt of Hotel Fitra International Tbk PT (FITT.JK) is 6.90%.

	Range	Selected
Cost of equity	9.30% - 11.30%	10.30%
Tax rate	0.40% - 0.50%	0.45%
Cost of debt	4.00% - 9.80%	6.90%
WACC	8.9% - 11.2%	10.1%

WACC

FITT.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.34	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	11.30%

Tax rate	0.40%	0.50%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	9.80%

After-tax WACC	8.9%	11.2%


Selected WACC	10.1%

FITT.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 FITT.JK:

cost_of_equity (10.30%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.34) + 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.