The WACC of Ygl Convergence Bhd (YGL.KL) is 8.5%.
Range | Selected | |
Cost of equity | 10.9% - 15.6% | 13.25% |
Tax rate | 9.0% - 18.8% | 13.9% |
Cost of debt | 4.4% - 4.5% | 4.45% |
WACC | 7.5% - 9.6% | 8.5% |
Category | Low | High |
Long-term bond rate | 3.8% | 4.3% |
Equity market risk premium | 6.9% | 7.8% |
Adjusted beta | 1.04 | 1.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.9% | 15.6% |
Tax rate | 9.0% | 18.8% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 4.4% | 4.5% |
After-tax WACC | 7.5% | 9.6% |
Selected WACC | 8.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
YGL.KL | Ygl Convergence Bhd | 0.9 | 1.69 | 0.93 |
DATAPRP.KL | Dataprep Holdings Bhd | 0.06 | 0.78 | 0.75 |
DGSB.KL | Diversified Gateway Solutions Bhd | 0.07 | 0.52 | 0.49 |
DNEX.KL | Dagang NeXchange Bhd | 0.13 | 1.1 | 0.98 |
EDARAN.KL | Edaran Bhd | 1.74 | 0.73 | 0.28 |
HTPADU.KL | HeiTech Padu Bhd | 1.03 | 0.97 | 0.5 |
MSNIAGA.KL | Mesiniaga Bhd | 0.19 | 1.08 | 0.92 |
PRIVA.KL | Privasia Technology Bhd | 0.7 | 1.54 | 0.94 |
SRIDGE.KL | Silver Ridge Holdings Bhd | 0.12 | 0.65 | 0.59 |
TDEX.KL | TechnoDex Bhd | 0.12 | -0.04 | -0.03 |
YYN.SI | Plato Capital Ltd | 0 | 1.19 | 1.19 |
Low | High | |
Unlevered beta | 0.59 | 0.92 |
Relevered beta | 1.06 | 1.55 |
Adjusted relevered beta | 1.04 | 1.37 |
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 YGL.KL:
cost_of_equity (13.25%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.04) + 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.