DBO.TO WACC - Weighted Average Cost of Capital

The WACC of D-Box Technologies Inc (DBO.TO) is 5.6%.

The Cost of Equity of D-Box Technologies Inc (DBO.TO) is 5.65%.

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

	Range	Selected
Cost of equity	4.50% - 6.80%	5.65%
Tax rate	0.40% - 0.50%	0.45%
Cost of debt	4.00% - 5.70%	4.85%
WACC	4.5% - 6.7%	5.6%

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	0.27	0.43

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.50%	6.80%

Tax rate	0.40%	0.50%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.00%	5.70%

After-tax WACC	4.5%	6.7%


Selected WACC	5.6%

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 (5.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.27) + 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.