DANH.TA WACC - Weighted Average Cost of Capital

The WACC of Dan Hotels Ltd (DANH.TA) is 10.2%.

The Cost of Equity of Dan Hotels Ltd (DANH.TA) is 10.55%.

The Cost of Debt of Dan Hotels Ltd (DANH.TA) is 10.30%.

	Range	Selected
Cost of equity	8.70% - 12.40%	10.55%
Tax rate	17.50% - 21.40%	19.45%
Cost of debt	4.00% - 16.60%	10.30%
WACC	7.8% - 12.5%	10.2%

WACC

DANH.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.64	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.40%

Tax rate	17.50%	21.40%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.00%	16.60%

After-tax WACC	7.8%	12.5%


Selected WACC	10.2%

DANH.TA'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 DANH.TA:

cost_of_equity (10.55%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.