DBD
Diebold Nixdorf Inc
Price:  
48.58 
USD
Volume:  
114,059.00
United States | Technology Hardware, Storage & Peripherals
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DBD WACC - Weighted Average Cost of Capital

The WACC of Diebold Nixdorf Inc (DBD) is 9.1%.

The Cost of Equity of Diebold Nixdorf Inc (DBD) is 10.70%.
The Cost of Debt of Diebold Nixdorf Inc (DBD) is 8.85%.

Range Selected
Cost of equity 9.00% - 12.40% 10.70%
Tax rate 22.50% - 42.30% 32.40%
Cost of debt 8.60% - 9.10% 8.85%
WACC 8.2% - 9.9% 9.1%
WACC

DBD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.13 1.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 12.40%
Tax rate 22.50% 42.30%
Debt/Equity ratio 0.53 0.53
Cost of debt 8.60% 9.10%
After-tax WACC 8.2% 9.9%
Selected WACC 9.1%

DBD'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 DBD:

cost_of_equity (10.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.13) + 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.