DEK.WA WACC - Weighted Average Cost of Capital

The WACC of Dekpol SA (DEK.WA) is 9.7%.

The Cost of Equity of Dekpol SA (DEK.WA) is 12.25%.

The Cost of Debt of Dekpol SA (DEK.WA) is 7.60%.

	Range	Selected
Cost of equity	10.60% - 13.90%	12.25%
Tax rate	19.20% - 20.20%	19.70%
Cost of debt	7.50% - 7.70%	7.60%
WACC	8.7% - 10.7%	9.7%

WACC

DEK.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.8	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.90%

Tax rate	19.20%	20.20%
Debt/Equity ratio	0.71	0.71
Cost of debt	7.50%	7.70%

After-tax WACC	8.7%	10.7%


Selected WACC	9.7%

DEK.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 DEK.WA:

cost_of_equity (12.25%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.8) + 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.