YGL.KL
Ygl Convergence Bhd
Price:  
0.13 
MYR
Volume:  
791,300
Malaysia | IT Services

YGL.KL WACC - Weighted Average Cost of Capital

The WACC of Ygl Convergence Bhd (YGL.KL) is 8.5%.

The Cost of Equity of Ygl Convergence Bhd (YGL.KL) is 13.25%.
The Cost of Debt of Ygl Convergence Bhd (YGL.KL) is 4.45%.

RangeSelected
Cost of equity10.9% - 15.6%13.25%
Tax rate9.0% - 18.8%13.9%
Cost of debt4.4% - 4.5%4.45%
WACC7.5% - 9.6%8.5%
WACC

YGL.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta1.041.37
Additional risk adjustments0.0%0.5%
Cost of equity10.9%15.6%
Tax rate9.0%18.8%
Debt/Equity ratio
11
Cost of debt4.4%4.5%
After-tax WACC7.5%9.6%
Selected WACC8.5%

YGL.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 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.