DIA.L
Dialight PLC
Price:  
209.00 
GBP
Volume:  
3,368.00
United Kingdom | Electrical Equipment
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DIA.L WACC - Weighted Average Cost of Capital

The WACC of Dialight PLC (DIA.L) is 9.5%.

The Cost of Equity of Dialight PLC (DIA.L) is 11.35%.
The Cost of Debt of Dialight PLC (DIA.L) is 6.30%.

Range Selected
Cost of equity 8.70% - 14.00% 11.35%
Tax rate 12.10% - 20.00% 16.05%
Cost of debt 5.20% - 7.40% 6.30%
WACC 7.4% - 11.5% 9.5%
WACC

DIA.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.79 1.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 14.00%
Tax rate 12.10% 20.00%
Debt/Equity ratio 0.44 0.44
Cost of debt 5.20% 7.40%
After-tax WACC 7.4% 11.5%
Selected WACC 9.5%

DIA.L'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 DIA.L:

cost_of_equity (11.35%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.79) + 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.