YTLPOWR.KL
YTL Power International Bhd
Price:  
3.39 
MYR
Volume:  
21,061,800.00
Malaysia | Multi-Utilities
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YTLPOWR.KL WACC - Weighted Average Cost of Capital

The WACC of YTL Power International Bhd (YTLPOWR.KL) is 7.9%.

The Cost of Equity of YTL Power International Bhd (YTLPOWR.KL) is 13.30%.
The Cost of Debt of YTL Power International Bhd (YTLPOWR.KL) is 4.75%.

Range Selected
Cost of equity 12.00% - 14.60% 13.30%
Tax rate 16.30% - 38.20% 27.25%
Cost of debt 4.00% - 5.50% 4.75%
WACC 7.3% - 8.5% 7.9%
WACC

YTLPOWR.KL WACC calculation

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 12.00% 14.60%
Tax rate 16.30% 38.20%
Debt/Equity ratio 1.19 1.19
Cost of debt 4.00% 5.50%
After-tax WACC 7.3% 8.5%
Selected WACC 7.9%

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.