DISI.TA WACC - Weighted Average Cost of Capital

The WACC of Discount Investment Corp Ltd (DISI.TA) is 5.7%.

The Cost of Equity of Discount Investment Corp Ltd (DISI.TA) is 18.85%.

The Cost of Debt of Discount Investment Corp Ltd (DISI.TA) is 6.20%.

	Range	Selected
Cost of equity	8.80% - 28.90%	18.85%
Tax rate	21.90% - 28.50%	25.20%
Cost of debt	4.00% - 8.40%	6.20%
WACC	3.6% - 7.8%	5.7%

WACC

DISI.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.65	3.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	28.90%

Tax rate	21.90%	28.50%
Debt/Equity ratio	12.08	12.08
Cost of debt	4.00%	8.40%

After-tax WACC	3.6%	7.8%


Selected WACC	5.7%

DISI.TA'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 DISI.TA:

cost_of_equity (18.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.