The WACC of Desane Group Holdings Ltd (DGH.AX) is 5.8%.
Range | Selected | |
Cost of equity | 5.8% - 7.3% | 6.55% |
Tax rate | 29.9% - 30.1% | 30% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 5.0% - 6.6% | 5.8% |
Category | Low | High |
Long-term bond rate | 4.0% | 4.5% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.36 | 0.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.8% | 7.3% |
Tax rate | 29.9% | 30.1% |
Debt/Equity ratio | 0.41 | 0.41 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 5.0% | 6.6% |
Selected WACC | 5.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
DGH.AX | Desane Group Holdings Ltd | 0.41 | 0.07 | 0.05 |
287.HK | Winfair Investment Co Ltd | 0.1 | -0.1 | -0.09 |
499.HK | Qingdao Holdings International Ltd | 3.42 | 0.28 | 0.08 |
63.HK | China Asia Valley Group Ltd | 1.2 | 0.32 | 0.17 |
8067.HK | Oriental University City Holdings HK Ltd | 6.79 | 0.19 | 0.03 |
864.HK | Wing Lee Property Investments Ltd | 2.01 | 0.15 | 0.06 |
FDC.VN | Foreign Trade Development and Investment Corp of Ho Chi Minh City | 0.17 | -0.27 | -0.24 |
SAPRES.KL | Sapura Resources Bhd | 10.44 | 0.22 | 0.03 |
SJC.VN | Song Da 1.01 JSC | 5.46 | 0.52 | 0.11 |
SSL.AX | Sietel Ltd | 0.05 | -0.1 | -0.09 |
Low | High | |
Unlevered beta | 0.03 | 0.06 |
Relevered beta | 0.04 | 0.06 |
Adjusted relevered beta | 0.36 | 0.37 |
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 DGH.AX:
cost_of_equity (6.55%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.