YGEN.L WACC - Weighted Average Cost of Capital

The WACC of Yourgene Health PLC (YGEN.L) is 9.1%.

The Cost of Equity of Yourgene Health PLC (YGEN.L) is 6.70%.

The Cost of Debt of Yourgene Health PLC (YGEN.L) is 12.35%.

	Range	Selected
Cost of equity	5.90% - 7.50%	6.70%
Tax rate	1.10% - 12.10%	6.60%
Cost of debt	7.00% - 17.70%	12.35%
WACC	6.4% - 11.8%	9.1%

WACC

YGEN.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.31	0.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	7.50%

Tax rate	1.10%	12.10%
Debt/Equity ratio	1.16	1.16
Cost of debt	7.00%	17.70%

After-tax WACC	6.4%	11.8%


Selected WACC	9.1%

YGEN.L'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 YGEN.L:

cost_of_equity (6.70%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.31) + 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.