YESBANK.NS
Yes Bank Ltd
Price:  
21.51 
INR
Volume:  
264,756,780
India | Banks

YESBANK.NS WACC - Weighted Average Cost of Capital

The WACC of Yes Bank Ltd (YESBANK.NS) is 12.2%.

The Cost of Equity of Yes Bank Ltd (YESBANK.NS) is 21.95%.
The Cost of Debt of Yes Bank Ltd (YESBANK.NS) is 5%.

RangeSelected
Cost of equity20.4% - 23.5%21.95%
Tax rate24.7% - 25.3%25%
Cost of debt5.0% - 5.0%5%
WACC11.5% - 13.0%12.2%
WACC

YESBANK.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.631.68
Additional risk adjustments0.0%0.5%
Cost of equity20.4%23.5%
Tax rate24.7%25.3%
Debt/Equity ratio
1.151.15
Cost of debt5.0%5.0%
After-tax WACC11.5%13.0%
Selected WACC12.2%

YESBANK.NS'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 YESBANK.NS:

cost_of_equity (21.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.63) + 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.