YSG
Yatsen Holding Ltd
Price:  
10.09 
USD
Volume:  
491,850
China | Personal Products

YSG WACC - Weighted Average Cost of Capital

The WACC of Yatsen Holding Ltd (YSG) is 7.1%.

The Cost of Equity of Yatsen Holding Ltd (YSG) is 7.3%.
The Cost of Debt of Yatsen Holding Ltd (YSG) is 7%.

RangeSelected
Cost of equity5.4% - 9.2%7.3%
Tax rate0.3% - 0.4%0.35%
Cost of debt7.0% - 7.0%7%
WACC6.2% - 8.1%7.1%
WACC

YSG WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.330.78
Additional risk adjustments0.0%0.5%
Cost of equity5.4%9.2%
Tax rate0.3%0.4%
Debt/Equity ratio
11
Cost of debt7.0%7.0%
After-tax WACC6.2%8.1%
Selected WACC7.1%

YSG'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 YSG:

cost_of_equity (7.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.33) + 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.