DGB.AS WACC - Weighted Average Cost of Capital

The WACC of DGB Group NV (DGB.AS) is 10.6%.

The Cost of Equity of DGB Group NV (DGB.AS) is 7.60%.

The Cost of Debt of DGB Group NV (DGB.AS) is 14.45%.

	Range	Selected
Cost of equity	5.40% - 9.80%	7.60%
Tax rate	2.40% - 4.10%	3.25%
Cost of debt	7.00% - 21.90%	14.45%
WACC	6.1% - 15.1%	10.6%

WACC

DGB.AS WACC calculation

Category	Low	High

Long-term bond rate	2.6%	3.1%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.55	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.40%	9.80%

Tax rate	2.40%	4.10%
Debt/Equity ratio	0.92	0.92
Cost of debt	7.00%	21.90%

After-tax WACC	6.1%	15.1%


Selected WACC	10.6%

DGB.AS'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 DGB.AS:

cost_of_equity (7.60%) = risk_free_rate (2.85%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + 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.