GOTO.JK WACC - Weighted Average Cost of Capital

The WACC of GoTo Gojek Tokopedia PT (GOTO.JK) is 13.6%.

The Cost of Equity of GoTo Gojek Tokopedia PT (GOTO.JK) is 14.05%.

The Cost of Debt of GoTo Gojek Tokopedia PT (GOTO.JK) is 7.10%.

	Range	Selected
Cost of equity	12.90% - 15.20%	14.05%
Tax rate	0.30% - 0.60%	0.45%
Cost of debt	4.00% - 10.20%	7.10%
WACC	12.3% - 14.8%	13.6%

WACC

GOTO.JK WACC calculation

Category	Low	High

Long-term bond rate	6.6%	7.1%
Equity market risk premium	7.9%	8.9%
Adjusted beta	0.8	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	15.20%

Tax rate	0.30%	0.60%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	10.20%

After-tax WACC	12.3%	14.8%


Selected WACC	13.6%

GOTO.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 GOTO.JK:

cost_of_equity (14.05%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.8) + 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.