DGA.WA
DGA SA
Price:  
18.35 
PLN
Volume:  
1,914
Poland | Professional Services

DGA.WA WACC - Weighted Average Cost of Capital

The WACC of DGA SA (DGA.WA) is 9.2%.

The Cost of Equity of DGA SA (DGA.WA) is 9.2%.
The Cost of Debt of DGA SA (DGA.WA) is 5%.

RangeSelected
Cost of equity8.0% - 10.4%9.2%
Tax rate31.1% - 36.3%33.7%
Cost of debt5.0% - 5.0%5%
WACC8.0% - 10.4%9.2%
WACC

DGA.WA WACC calculation

CategoryLowHigh
Long-term bond rate5.5%6.0%
Equity market risk premium6.3%7.3%
Adjusted beta0.40.53
Additional risk adjustments0.0%0.5%
Cost of equity8.0%10.4%
Tax rate31.1%36.3%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC8.0%10.4%
Selected WACC9.2%

DGA.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 DGA.WA:

cost_of_equity (9.20%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.4) + 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.