YONGTAI.KL WACC - Weighted Average Cost of Capital

The WACC of Yong Tai Bhd (YONGTAI.KL) is 6.4%.

The Cost of Equity of Yong Tai Bhd (YONGTAI.KL) is 11.90%.

The Cost of Debt of Yong Tai Bhd (YONGTAI.KL) is 5.65%.

	Range	Selected
Cost of equity	9.70% - 14.10%	11.90%
Tax rate	17.40% - 35.10%	26.25%
Cost of debt	5.30% - 6.00%	5.65%
WACC	6.0% - 6.9%	6.4%

WACC

YONGTAI.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.86	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	14.10%

Tax rate	17.40%	35.10%
Debt/Equity ratio	2.38	2.38
Cost of debt	5.30%	6.00%

After-tax WACC	6.0%	6.9%


Selected WACC	6.4%

YONGTAI.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 YONGTAI.KL:

cost_of_equity (11.90%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.86) + 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.