YYN.SI WACC - Weighted Average Cost of Capital

The WACC of Plato Capital Ltd (YYN.SI) is 6.5%.

The Cost of Equity of Plato Capital Ltd (YYN.SI) is 6.50%.

The Cost of Debt of Plato Capital Ltd (YYN.SI) is 5.50%.

	Range	Selected
Cost of equity	5.30% - 7.70%	6.50%
Tax rate	0.50% - 0.80%	0.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.3% - 7.7%	6.5%

WACC

YYN.SI WACC calculation

Category	Low	High

Long-term bond rate	2.7%	3.2%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.41	0.57

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.30%	7.70%

Tax rate	0.50%	0.80%
Debt/Equity ratio	0	0
Cost of debt	4.00%	7.00%

After-tax WACC	5.3%	7.7%


Selected WACC	6.5%

YYN.SI'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 YYN.SI:

cost_of_equity (6.50%) = risk_free_rate (2.95%) + equity_risk_premium (5.60%) * adjusted_beta (0.41) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.