YSPSAH.KL WACC - Weighted Average Cost of Capital

The WACC of YSP Southeast Asia Holding Bhd (YSPSAH.KL) is 8.2%.

The Cost of Equity of YSP Southeast Asia Holding Bhd (YSPSAH.KL) is 9.00%.

The Cost of Debt of YSP Southeast Asia Holding Bhd (YSPSAH.KL) is 4.80%.

	Range	Selected
Cost of equity	7.50% - 10.50%	9.00%
Tax rate	28.70% - 30.20%	29.45%
Cost of debt	4.40% - 5.20%	4.80%
WACC	6.9% - 9.5%	8.2%

WACC

YSPSAH.KL WACC calculation

Category	Low	High

Long-term bond rate	3.8%	4.3%
Equity market risk premium	6.9%	7.8%
Adjusted beta	0.54	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.50%	10.50%

Tax rate	28.70%	30.20%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.40%	5.20%

After-tax WACC	6.9%	9.5%


Selected WACC	8.2%

YSPSAH.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 YSPSAH.KL:

cost_of_equity (9.00%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.54) + 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.