DDD
3D Systems Corp
Price:  
2.37 
USD
Volume:  
4,320,967.00
United States | Technology Hardware, Storage & Peripherals
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DDD WACC - Weighted Average Cost of Capital

The WACC of 3D Systems Corp (DDD) is 7.9%.

The Cost of Equity of 3D Systems Corp (DDD) is 9.55%.
The Cost of Debt of 3D Systems Corp (DDD) is 5.50%.

Range Selected
Cost of equity 7.80% - 11.30% 9.55%
Tax rate 0.80% - 1.20% 1.00%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.2% - 9.5% 7.9%
WACC

DDD WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.85 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 11.30%
Tax rate 0.80% 1.20%
Debt/Equity ratio 0.7 0.7
Cost of debt 4.00% 7.00%
After-tax WACC 6.2% 9.5%
Selected WACC 7.9%

DDD'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 DDD:

cost_of_equity (9.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.85) + 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.