BOOM
DMC Global Inc
Price:  
6.70 
USD
Volume:  
235,500.00
United States | Energy Equipment & Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BOOM WACC - Weighted Average Cost of Capital

The WACC of DMC Global Inc (BOOM) is 8.9%.

The Cost of Equity of DMC Global Inc (BOOM) is 9.15%.
The Cost of Debt of DMC Global Inc (BOOM) is 12.70%.

Range Selected
Cost of equity 7.30% - 11.00% 9.15%
Tax rate 28.20% - 34.40% 31.30%
Cost of debt 4.50% - 20.90% 12.70%
WACC 5.9% - 11.9% 8.9%
WACC

BOOM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.74 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 11.00%
Tax rate 28.20% 34.40%
Debt/Equity ratio 0.51 0.51
Cost of debt 4.50% 20.90%
After-tax WACC 5.9% 11.9%
Selected WACC 8.9%

BOOM'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 BOOM:

cost_of_equity (9.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.74) + 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.