YBS.KL
YBS International Bhd
Price:  
0.26 
MYR
Volume:  
3,734,300.00
Malaysia | Machinery
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YBS.KL WACC - Weighted Average Cost of Capital

The WACC of YBS International Bhd (YBS.KL) is 8.3%.

The Cost of Equity of YBS International Bhd (YBS.KL) is 10.85%.
The Cost of Debt of YBS International Bhd (YBS.KL) is 5.60%.

Range Selected
Cost of equity 7.90% - 13.80% 10.85%
Tax rate 20.30% - 25.40% 22.85%
Cost of debt 4.20% - 7.00% 5.60%
WACC 6.1% - 10.5% 8.3%
WACC

YBS.KL WACC calculation

Category Low High
Long-term bond rate 3.8% 4.3%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.6 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.90% 13.80%
Tax rate 20.30% 25.40%
Debt/Equity ratio 0.63 0.63
Cost of debt 4.20% 7.00%
After-tax WACC 6.1% 10.5%
Selected WACC 8.3%

YBS.KL'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 YBS.KL:

cost_of_equity (10.85%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.6) + 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.