PT Indofood CBP Sukses Makmur TbkPIFFY 70 WACC % is 4.26% as of Jun. 27, 2026, which is 0% below its 10-year median of 4.27. GuruFocus rates PIFFY with a GF Score™ of 70/100 and a GF Value™ of $13.50 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,036 Consumer Packaged Goods companies, PT Indofood CBP Sukses Makmur Tbk ranks better than 69.45% on this metric.
As of today (2026-06-27), PT Indofood CBP Sukses Makmur Tbk's weighted average cost of capital is 4.26%%. PT Indofood CBP Sukses Makmur Tbk's ROIC % is 12.94% (calculated using TTM income statement data).
PT Indofood CBP Sukses Makmur Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
PT Indofood CBP Sukses Makmur Tbk (OTCPK:PIFFY) 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 Indofood CBP Sukses Makmur Tbk's weighted average cost of capital is 4.26%%. PT Indofood CBP Sukses Makmur Tbk's ROIC % is 12.94% (calculated using TTM income statement data).
PT Indofood CBP Sukses Makmur Tbk generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 Indofood CBP Sukses Makmur Tbk WACC % Historical Data
* 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 Packaged Foods subindustry, PT Indofood CBP Sukses Makmur 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 Indofood CBP Sukses Makmur Tbk WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Indofood CBP Sukses Makmur Tbk's WACC % distribution charts can be found below:
* The bar in red indicates where PT Indofood CBP Sukses Makmur Tbk's WACC % falls into.
PT Indofood CBP Sukses Makmur Tbk WACC % Calculation
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 Indofood CBP Sukses Makmur Tbk's market capitalization (E) is $4320.771 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 Indofood CBP Sukses Makmur Tbk's latest one-year quarterly average Book Value of Debt (D) is $2835.6934 Mil.
a) weight of equity = E / (E + D) = 4320.771 / (4320.771 + 2835.6934) = 0.6038
b) weight of debt = D / (E + D) = 2835.6934 / (4320.771 + 2835.6934) = 0.3962
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 4.376%. 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 Indofood CBP Sukses Makmur Tbk's beta is 0.0563.
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 = 4.376% + 0.0563 * 6% = 4.7138%
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 Indofood CBP Sukses Makmur Tbk's interest expense (positive number) was $129.835 Mil. Its total Book Value of Debt (D) is $2835.6934 Mil.
Cost of Debt = 129.835 / 2835.6934 = 4.5786%.
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 = 181.132 / 827.824 = 21.88%.
* 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 Indofood CBP Sukses Makmur Tbk (PIFFY) has a WACC % of 4.26% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on PT Indofood CBP Sukses Makmur Tbk and its competitors. This is near median its historical median of 4.27. Over the past decade, PT Indofood CBP Sukses Makmur Tbk's WACC % has ranged from 1.62 to 8.81. According to the industry distribution chart, PT Indofood CBP Sukses Makmur Tbk ranks #622 out of 2036 companies in the Consumer Packaged Goods industry, placing it in the top 30.6%.
Is PT Indofood CBP Sukses Makmur Tbk's WACC % too high?
PT Indofood CBP Sukses Makmur Tbk's current WACC % of 4.26% is near median its 10-year median of 4.27. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 8.81. The Consumer Packaged Goods industry median WACC % is 7.76. PT Indofood CBP Sukses Makmur Tbk's value of 4.26% is 45.1% below this industry median. Based on the distribution chart, PT Indofood CBP Sukses Makmur Tbk ranks #622 out of 2036 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, PT Indofood CBP Sukses Makmur Tbk has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Indofood CBP Sukses Makmur Tbk's WACC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, PT Indofood CBP Sukses Makmur Tbk ranks #622 out of 2036 companies for WACC %. This puts PT Indofood CBP Sukses Makmur Tbk in the upper half of its industry. The industry median WACC % is 7.76. PT Indofood CBP Sukses Makmur Tbk's value of 4.26% is 45.1% below this benchmark. Historically, PT Indofood CBP Sukses Makmur Tbk's own WACC % has ranged from 1.62 to 8.81 over the past decade. While the company's 10-year median is 4.27 vs. the industry median of 7.76, PT Indofood CBP Sukses Makmur Tbk has consistently been below 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 a Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.76, based on 2,036 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 Indofood CBP Sukses Makmur Tbk's current WACC % of 4.26% is 45.1% below 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 Indofood CBP Sukses Makmur Tbk and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indofood CBP Sukses Makmur Tbk's current WACC % is 4.26%, which is near median its own 10-year median of 4.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indofood CBP Sukses Makmur Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indofood CBP Sukses Makmur Tbk (PIFFY) is currently considered Significantly Undervalued. The stock's GF Value™ is $13.50, compared to a current price of $7.41 — trading 45.1% below its estimated fair value. The current WACC % is 4.26%, which is near median its 10-year median of 4.27 and 45.1% below the Consumer Packaged Goods industry median of 7.76. PT Indofood CBP Sukses Makmur Tbk's overall GF Score™ is 70/100 with 1 warning sign 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 Indofood CBP Sukses Makmur Tbk (PIFFY), the current WACC % is 4.26% as of Jun. 27, 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 Indofood CBP Sukses Makmur Tbk (PIFFY) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indofood CBP Sukses Makmur Tbk stock appears to be undervalued.
The current stock price of $7.41 is trading 45.1% below its estimated GF Value™ of $13.50.
GuruFocus considers PT Indofood CBP Sukses Makmur Tbk to be Significantly Undervalued.
Key valuation signals for PIFFY:
WACC %: 4.26% (near median its 10-year median of 4.27)
GF Value™: $13.50 vs. price of $7.41 (45.1% below fair value)
Industry Position: 45.1% below the Consumer Packaged Goods median (#622 of 2036)
No single metric tells the full story. See the PIFFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indofood CBP Sukses Makmur Tbk Business Description
PT Indofood CBP Sukses Makmur Tbk operates in the consumer-branded products sector, offering products like noodles, milk, butter, biscuits, chips, chili sauce, syrups, ready-to-drink tea, condiments, etc. These are marketed under various brands such as Indomie, Supermi, Indomilk, Cap Enaak, Chitato, Sambal Indofood, Bumbu Racik, Govit, Sun, Ichi Ocha, Club, and others. The Group also operates a packaging business that produces flexible and corrugated packaging for its products. It classifies its business into the following divisions: Noodles, which generates maximum revenue, Dairy (dairy products), Food Seasonings, Snack Foods, Nutrition and Special Foods, and Beverages. Geographically, the Group derives maximum revenue from Indonesia, and the rest from Asia and Africa, and other regions.
70GF Score
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