YBS.KL
YBS International Bhd
Price:  
0.24 
MYR
Volume:  
189,400.00
Malaysia | Machinery
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YBS.KL WACC - Weighted Average Cost of Capital

The WACC of YBS International Bhd (YBS.KL) is 10.3%.

The Cost of Equity of YBS International Bhd (YBS.KL) is 15.30%.
The Cost of Debt of YBS International Bhd (YBS.KL) is 5.00%.

Range Selected
Cost of equity 13.50% - 17.10% 15.30%
Tax rate 15.40% - 20.30% 17.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.4% - 11.3% 10.3%
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 1.42 1.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 17.10%
Tax rate 15.40% 20.30%
Debt/Equity ratio 0.8 0.8
Cost of debt 5.00% 5.00%
After-tax WACC 9.4% 11.3%
Selected WACC 10.3%

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 (15.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.42) + 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.