YTLPOWR.KL WACC - Weighted Average Cost of Capital
The WACC of YTL Power International Bhd (YTLPOWR.KL) is 7.9%.
| Range | Selected | |
| Cost of equity | 12.0% - 14.6% | 13.3% |
| Tax rate | 16.3% - 38.2% | 27.25% |
| Cost of debt | 4.0% - 5.5% | 4.75% |
| WACC | 7.3% - 8.5% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 3.8% | 4.3% |
| Equity market risk premium | 6.9% | 7.8% |
| Adjusted beta | 1.2 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.0% | 14.6% |
| Tax rate | 16.3% | 38.2% |
| Debt/Equity ratio | 1.19 | 1.19 |
| Cost of debt | 4.0% | 5.5% |
| After-tax WACC | 7.3% | 8.5% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| YTLPOWR.KL | YTL Power International Bhd | 1.19 | 1.81 | 0.91 |
| 000958.SZ | SPIC Dongfang New Energy Corp | 0.27 | 0.82 | 0.68 |
| 600982.SS | Ningbo Energy Group Co Ltd | 1.57 | 0.93 | 0.41 |
| GASMSIA.KL | Gas Malaysia Bhd | 0.08 | 0.65 | 0.61 |
| PBA.KL | Pba Holdings Bhd | 0.38 | 1.94 | 1.47 |
| RANHILL.KL | Ranhill Utilities Bhd | 0.58 | 1.01 | 0.68 |
| SAMAIDEN.KL | Samaiden Group Bhd | 0.02 | 1.15 | 1.13 |
| U96.SI | Sembcorp Industries Ltd | 0.8 | 0.54 | 0.33 |
| VCT.NZ | Vector Ltd | 0.51 | 0.29 | 0.2 |
| YTL.KL | YTL Corporation Bhd | 2.33 | 2.02 | 0.69 |
| Low | High | |
| Unlevered beta | 0.65 | 0.69 |
| Relevered beta | 1.3 | 1.36 |
| Adjusted relevered beta | 1.2 | 1.24 |
YTLPOWR.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 YTLPOWR.KL:
cost_of_equity (13.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (1.2) + 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.