FORU.JK
Fortune Indonesia Tbk PT
Price:  
1,245 
IDR
Volume:  
140,900
Indonesia | Media

FORU.JK WACC - Weighted Average Cost of Capital

The WACC of Fortune Indonesia Tbk PT (FORU.JK) is 11.4%.

The Cost of Equity of Fortune Indonesia Tbk PT (FORU.JK) is 11.45%.
The Cost of Debt of Fortune Indonesia Tbk PT (FORU.JK) is 7.2%.

RangeSelected
Cost of equity10.1% - 12.8%11.45%
Tax rate13.8% - 26.2%20%
Cost of debt7.2% - 7.2%7.2%
WACC10.0% - 12.7%11.4%
WACC

FORU.JK WACC calculation

CategoryLowHigh
Long-term bond rate6.6%7.1%
Equity market risk premium7.9%8.9%
Adjusted beta0.440.58
Additional risk adjustments0.0%0.5%
Cost of equity10.1%12.8%
Tax rate13.8%26.2%
Debt/Equity ratio
00
Cost of debt7.2%7.2%
After-tax WACC10.0%12.7%
Selected WACC11.4%

FORU.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 FORU.JK:

cost_of_equity (11.45%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.44) + 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.