DIS.MI WACC - Weighted Average Cost of Capital

The WACC of d'Amico International Shipping SA (DIS.MI) is 10.2%.

The Cost of Equity of d'Amico International Shipping SA (DIS.MI) is 14.15%.

The Cost of Debt of d'Amico International Shipping SA (DIS.MI) is 4.35%.

	Range	Selected
Cost of equity	11.70% - 16.60%	14.15%
Tax rate	0.80% - 1.10%	0.95%
Cost of debt	4.20% - 4.50%	4.35%
WACC	8.7% - 11.7%	10.2%

WACC

DIS.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	16.60%

Tax rate	0.80%	1.10%
Debt/Equity ratio	0.67	0.67
Cost of debt	4.20%	4.50%

After-tax WACC	8.7%	11.7%


Selected WACC	10.2%

DIS.MI'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 DIS.MI:

cost_of_equity (14.15%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.