DBO.TO
D-Box Technologies Inc
Price:  
0.19 
CAD
Volume:  
37,300.00
Canada | Household Durables
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DBO.TO WACC - Weighted Average Cost of Capital

The WACC of D-Box Technologies Inc (DBO.TO) is 6.0%.

The Cost of Equity of D-Box Technologies Inc (DBO.TO) is 6.10%.
The Cost of Debt of D-Box Technologies Inc (DBO.TO) is 4.85%.

Range Selected
Cost of equity 4.90% - 7.30% 6.10%
Tax rate 0.40% - 0.50% 0.45%
Cost of debt 4.00% - 5.70% 4.85%
WACC 4.8% - 7.2% 6.0%
WACC

DBO.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.34 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.90% 7.30%
Tax rate 0.40% 0.50%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.00% 5.70%
After-tax WACC 4.8% 7.2%
Selected WACC 6.0%

DBO.TO'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 DBO.TO:

cost_of_equity (6.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.34) + 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.