DBX
Dropbox Inc
Price:  
23.64 
USD
Volume:  
2,680,166.00
United States | Software
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Dropbox WACC - Weighted Average Cost of Capital

The WACC of Dropbox Inc (DBX) is 8.9%.

The Cost of Equity of Dropbox Inc (DBX) is 9.95%.
The Cost of Debt of Dropbox Inc (DBX) is 4.25%.

Range Selected
Cost of equity 8.70% - 11.20% 9.95%
Tax rate 8.30% - 14.60% 11.45%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.9% - 10.0% 8.9%
WACC

Dropbox WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.06 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.20%
Tax rate 8.30% 14.60%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.00% 4.50%
After-tax WACC 7.9% 10.0%
Selected WACC 8.9%