YSPSAH.KL WACC - Weighted Average Cost of Capital

The WACC of YSP Southeast Asia Holding Bhd (YSPSAH.KL) is 7.7%.

The Cost of Equity of YSP Southeast Asia Holding Bhd (YSPSAH.KL) is 8.55%.

The Cost of Debt of YSP Southeast Asia Holding Bhd (YSPSAH.KL) is 4.85%.

	Range	Selected
Cost of equity	7.40% - 9.70%	8.55%
Tax rate	30.50% - 31.70%	31.10%
Cost of debt	4.40% - 5.30%	4.85%
WACC	6.7% - 8.8%	7.7%

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	0.52	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.40%	9.70%

Tax rate	30.50%	31.70%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.40%	5.30%

After-tax WACC	6.7%	8.8%


Selected WACC	7.7%

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 (8.55%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.52) + 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.