YINSON.KL
Yinson Holdings Bhd
Price:  
1.95 
MYR
Volume:  
2,871,400
Malaysia | Energy Equipment & Services

YINSON.KL WACC - Weighted Average Cost of Capital

The WACC of Yinson Holdings Bhd (YINSON.KL) is 8.7%.

The Cost of Equity of Yinson Holdings Bhd (YINSON.KL) is 15.5%.
The Cost of Debt of Yinson Holdings Bhd (YINSON.KL) is 8.55%.

RangeSelected
Cost of equity13.4% - 17.6%15.5%
Tax rate28.1% - 29.9%29%
Cost of debt8.1% - 9.0%8.55%
WACC7.9% - 9.4%8.7%
WACC

YINSON.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta1.41.64
Additional risk adjustments0.0%0.5%
Cost of equity13.4%17.6%
Tax rate28.1%29.9%
Debt/Equity ratio
2.632.63
Cost of debt8.1%9.0%
After-tax WACC7.9%9.4%
Selected WACC8.7%

YINSON.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 YINSON.KL:

cost_of_equity (15.50%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.4) + 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.