DDI.WA WACC - Weighted Average Cost of Capital

The WACC of Draw Distance SA (DDI.WA) is 7.9%.

The Cost of Equity of Draw Distance SA (DDI.WA) is 8.50%.

The Cost of Debt of Draw Distance SA (DDI.WA) is 11.25%.

	Range	Selected
Cost of equity	6.80% - 10.20%	8.50%
Tax rate	22.60% - 35.10%	28.85%
Cost of debt	5.20% - 17.30%	11.25%
WACC	5.0% - 10.8%	7.9%

WACC

DDI.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.2	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	10.20%

Tax rate	22.60%	35.10%
Debt/Equity ratio	1.82	1.82
Cost of debt	5.20%	17.30%

After-tax WACC	5.0%	10.8%


Selected WACC	7.9%

DDI.WA'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 DDI.WA:

cost_of_equity (8.50%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.2) + 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.